Bingo and casino operator Rank confirmed on Monday it is in talks with private equity-owned Gala Coral over the possible acquisition of Gala's casino business.

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

A report in the Sunday Times said Rank, which owns the Grosvenor Casino and Mecca Bingo chains, was in talks to buy the business for up to 250 million pounds.

The deal would see Rank, which is 74 percent owned by Malaysian-based gambling group Guoco, merge its 35 Grosvenor Casinos chain with the 24 casinos owned by Gala, making it Britain's biggest operator.

Shares in Rank closed on Friday at 127 pence, valuing the business at 496 million pounds.

(Reporting by Matt Scuffham; Editing by Sarah Young)