ladbrokes-in-merger-talks-with-gala-coral-group

1 Ladbrokes in Merger Talks with Gala Coral Group

Ladbrokes in merger talks with Gala Coral Group

Bookmaker Ladbrokes has said it remains in talks with the board of Gala Coral Group over a possible merger.

An bet9ja's welcome offer would create the UK's biggest bookmaker with nearly 4,000 High Street shops.
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The conversations concern integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms.
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Ladbrokes stated there was no certainty that the yohaig code talks would cause an bet9ja's welcome offer, and possible terms and timings were also yet to be concurred.
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Shares in Ladbrokes rose more than 11% after the statement.

"A merger with Gala Coral might produce a combined service with significant scale and has the possible to generate considerable expense synergies, creating value for both companies' shareholders," president Jim Mullen stated.

If the deal proceeds, it would see the merged group overtake William Hill as the greatest UK bookmaker, around 2,100 shops from Ladbrokes and 1,845 from Coral.
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The merger talks do not include Gala's 132-strong bingo service.

Mr Mullen added that the firm's board has yet to choose whether a deal would be "tactically appealing" and whether it might be "delivered to investors on proper terms."
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The company said that the deal, if completed, could be categorized as a reverse takeover of Ladbrokes.

Ladbrokes previously tried to buy Coral in 1998, but its organized takeover was obstructed by the government.

The then Trade and Industry Secretary Peter Mandelson said a merger would result in "a weakening of price competitors at the yohaig code nationwide level" and a decrease in customer option.

Earlier this year, Ladbrokes reported a big fall in pre-tax revenue for 2014, from ₤ 68m to ₤ 38m, and stated that it anticipated to close 60 UK shops this promotion code year.
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Those strategies would be untouched by any handle Coral Group.
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Job loss fears at Ladbrokes Ireland

21 April 2015

Gala Coral Group