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Novomatic UK Ltd (Novomatic) acquired Talarius Ltd (Talarius) on 24 June 2016. Novomatic, which operates adult gaming centres under several brands including Admiral and Noble, acquired 169
centres from Talarius, which operated under the Quiksilver brand. As a result, the companies will operate a total of 264 adult gaming centres in Great Britain.
The Competition and Markets Authority (CMA) assessed the impact of the merger at the national level but did not find any concerns. However, it found that the merger may lead to competition
concerns in the supply of gaming machine products to the public in 5 local areas: Chesterfield, Clapham, Dartford, Darlington and Grimsby. In each area, the companies were close competitors
and, following the merger, Novomatic would be unlikely to face sufficient competition from other adult gaming centres, licensed betting offices or bingo halls.
The merger will therefore be referred for an in-depth phase 2 investigation by an independent group of CMA panel members unless Novomatic is able to offer undertakings which address the
CMA’s competition concerns. The company has until 4 November 2016 to do so.
Sheldon Mills, CMA Senior Director of Mergers and decision maker in this case, said:
In most of the local areas where Admiral or Noble and Quiksilver gaming centres compete, we found that there were other competing gaming centres as well as some competition from betting
shops and bingo halls with gaming machines which compete with those in a gaming centre. Overall, we found that these combined alternatives would push Novomatic to keep offering a competitive
service to its customers.