Ladbrokes in Merger Talks with Gala Coral Group
Ladbrokes in merger talks with Gala Coral Group
Bookmaker Ladbrokes has stated it remains in talks with the board of Gala Coral Group over a possible merger.
A deal would develop the UK's most significant bookmaker with nearly 4,000 High Street shops.
The conversations concern combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes said there was no certainty that the talks would cause an offer, and possible terms and timings were also yet to be agreed.
Shares in Ladbrokes rose more than 11% after the announcement.
"A merger with Gala Coral might develop a combined company with considerable scale and has the possible to generate significant expense synergies, creating worth for both business' shareholders," chief executive Jim Mullen said.
If the deal goes ahead, it would see the merged group overtake William Hill as the greatest UK bookie, bringing together around 2,100 stores from Ladbrokes and 1,845 from Coral.
The merger talks do not consist of Gala's 132-strong bingo business.
Mr Mullen added that the company's board has yet to decide whether an offer would be "tactically attractive" and whether it could be "provided to shareholders on suitable terms."
The firm said that the deal, if finished, might be categorized as a reverse takeover of Ladbrokes.
Ladbrokes formerly tried to buy Coral in 1998, however its scheduled takeover was blocked by the federal government.
The then Trade and Industry Secretary Peter Mandelson stated a merger would cause "a weakening of cost competition at the nationwide level" and a decrease in consumer choice.
Earlier this year, Ladbrokes reported a big fall in pre-tax earnings for 2014, from ₤ 68m to ₤ 38m, and said that it expected to close 60 UK shops this year.
Those plans would be untouched by any handle Coral Group.
Ladbrokes in merger talks with Gala Coral Group
Bookmaker Ladbrokes has stated it remains in talks with the board of Gala Coral Group over a possible merger.
A deal would develop the UK's most significant bookmaker with nearly 4,000 High Street shops.
The conversations concern combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes said there was no certainty that the talks would cause an offer, and possible terms and timings were also yet to be agreed.
Shares in Ladbrokes rose more than 11% after the announcement.
"A merger with Gala Coral might develop a combined company with considerable scale and has the possible to generate significant expense synergies, creating worth for both business' shareholders," chief executive Jim Mullen said.
If the deal goes ahead, it would see the merged group overtake William Hill as the greatest UK bookie, bringing together around 2,100 stores from Ladbrokes and 1,845 from Coral.
The merger talks do not consist of Gala's 132-strong bingo business.
Mr Mullen added that the company's board has yet to decide whether an offer would be "tactically attractive" and whether it could be "provided to shareholders on suitable terms."
The firm said that the deal, if finished, might be categorized as a reverse takeover of Ladbrokes.
Ladbrokes formerly tried to buy Coral in 1998, however its scheduled takeover was blocked by the federal government.
The then Trade and Industry Secretary Peter Mandelson stated a merger would cause "a weakening of cost competition at the nationwide level" and a decrease in consumer choice.
Earlier this year, Ladbrokes reported a big fall in pre-tax earnings for 2014, from ₤ 68m to ₤ 38m, and said that it expected to close 60 UK shops this year.
Those plans would be untouched by any handle Coral Group.