Casino operator Rank Group's planned takeover of rival Gala Coral has been held up indefinitely by competition concerns.

The deal, which would result in Gala and its portfolio of 23 casinos becoming a part of Rank, was first announced by the two companies in May.

The takeover was conditional upon receipt of UK merger control clearance, with a deadline set for the green light to be received by 19 September.

The Office of Fair Trading (OFT), however, referred the £205m sale of Gala to Rank to the Competition Commission in August over fears that the deal would be anti-competitive. If successful, the merger would create the UK's largest casino group.

With the formal deadline having now passed without a ruling by the Competition Commission, Rank's offer is no longer binding and the deal has entered a state of limbo.

In a statement, a spokesperson for Rank said the company was "continuing to assist the Competition Commission with its inquiry" and would continue its discussions in relation to "appropriate amendments" to secure the deal.

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