The Rank Group, owner of Grosvenor Casinos, is in talks with Gala Coral over the possible acquisition of its casino arm.

Rank confirmed on Monday that it is in discussions with Gala Coral about the potential takeover of the Gala Casinos business.

Rank is the second largest casino operator in the UK and is planning to further expand its estate of casinos to 45 by 2015. Gala Casinos, meanwhile, is the third largest operator with 24 venues.

If the acquisition goes ahead, Rank would likely overtake Genting UK as the UK’s largest casino group. According to media reports over the weekend, the deal could be worth in excess of £250m.

Rank, however, would not speculate on the nature of the possible transaction.

“The terms of any such acquisition have not yet been finalised and there is no certainty that any transaction will occur,” Rank said.

Gala Coral has been rumoured to be considering selling its casino business for some time, with the suggestion that it will focus instead on its bookmaking, bingo and online gaming businesses.

Rank was itself the subject of a £586m takeover last year at the hands of Malaysia’s Guoco Group.