As reported in InterGame's Expose column in June - although the German company was not identified - South African gaming company Grand Parade Investments has formed a machine manufacturing joint venture with the Gauselmann Group’s Merkur Gaming.
The two have established a new company, Grand Merkur, which will be registered in South Africa to manufacture, assemble and distribute slot machines, sports betting terminals and lottery terminals. The new company will also explore opportunities for the possible operation of gaming facilities, while also looking at developing a training centre and an R&D facility.
The deal brings together GPI’s local expertise and the intellectual property of one of the biggest gaming machine manufacturers in Europe. Grand Merkur will be able to supply product that has enjoyed significant success in Europe to the South African marketplace. The new company will be based in Cape Town.
“Grand Merkur was established because both Merkur and GPI saw significant growth prospects in South Africa and throughout the continent,” said Thomas Niehenke, chief operating officer of the Gauselmann group. “For Merkur, Africa offers an ideal expansion opportunity for our ever expanding manufacturing arm, Gauselmann adp.
“Currently, South Africa has no local slot or gaming machine manufacturing plant, which we believe presents us with an ideal gap in the market. GPI's gaming experience and established industry relationships make it an ideal partner in Africa."
The opportunity to export manufactured products to the rest of Africa, Europe and elsewhere is a “significant benefit,” said Hassen Adams, executive chairman of GPI.
“For GPI the venture forms part of our vision and commitment to invest in South Africa and its communities and to advance transformation and economic empowerment,” he said. “Both GPI and Merkur have similar histories, philosophies and visions and as such form a perfect fit. We each share a commitment to investing in people and communities, ensuring innovation as well as growth and sustainability."
GPI has also signed further agreements with South African electronics manufacturer Tellumat to assist with the project and to secure its services at its Atlantis and Retreat manufacturing plants.
