Caesars Entertainment, the Las Vegas casino-owner, has struck a £2.9bn deal to take over UK betting firm William Hill.
The boards of the US firm and William Hill agreed a cash offer of 272p a share subject to shareholders voting in favour.
US private equity firm Apollo had also made a bid to take over William Hill.
But Caesars said that if the UK company chose Apollo, it would jeopardise a joint venture between them.
Caesars owns a 20% stake in William Hill’s US operations, which also have exclusive rights to operate sports betting under the Caesars brand.
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Roger Devlin, chairman of William Hill, said: “The William Hill board believes this is the best option for William Hill at an attractive price for shareholders.”
Caesars chief executive Tom Reeg said: “The opportunity to combine our land based-casinos, sports betting and online gaming in the US is a truly exciting prospect.”