Ladbrokes-Gala Coral Deal Clearance May Depend On Shop Sales
Ladbrokes-Gala Coral deal clearance may depend on shop sales
Bookmakers Ladbrokes and Gala Coral may have to shed numerous stores if their proposed merger is to go on, the competitors guard dog has said.
The Competition and Markets Authority said a merger of the UK's 2nd and third largest bookmakers may restrict competition on the High Street.
About 350 to 400 shops may need to be offered "for the merger to be conditionally cleared", the CMA stated.
The CMA has actually offered until 13 June for responses to its provisional findings.
Ladbrokes runs 2,154 wagering stores in Great Britain and 77 in Northern Ireland, while Gala Coral runs about 1,850 betting stores in Great Britain.
The combined group would make it bigger than current market leader William Hill.
Martin Cave, who is chairing the CMA's inquiry, said: "We have actually provisionally found that the merger between 2 of the biggest bookmakers in the nation might be expected to minimize competition and choice for consumers in a a great deal of areas.
"Although online wagering has grown significantly in the last few years, the evidence we've seen confirms that a big number of customers still select to wager in stores - and numerous would continue to do so after the merger.
"For these clients, competitors originates from the option of shops in their regional area and it's they who might lose out from any decrease of competitors and option."
The CMA stated it was aiming to release its final report by the end of July.
Ladbrokes said: "This is a substantial step and our focus now will be on agreeing the store disposals to please the CMA." Ladbrokes shares had actually leapt 6.5% by the close of trade on Friday.
Ladbrokes-Gala Coral deal clearance may depend on shop sales
Bookmakers Ladbrokes and Gala Coral may have to shed numerous stores if their proposed merger is to go on, the competitors guard dog has said.
The Competition and Markets Authority said a merger of the UK's 2nd and third largest bookmakers may restrict competition on the High Street.
About 350 to 400 shops may need to be offered "for the merger to be conditionally cleared", the CMA stated.
The CMA has actually offered until 13 June for responses to its provisional findings.
Ladbrokes runs 2,154 wagering stores in Great Britain and 77 in Northern Ireland, while Gala Coral runs about 1,850 betting stores in Great Britain.
The combined group would make it bigger than current market leader William Hill.
Martin Cave, who is chairing the CMA's inquiry, said: "We have actually provisionally found that the merger between 2 of the biggest bookmakers in the nation might be expected to minimize competition and choice for consumers in a a great deal of areas.
"Although online wagering has grown significantly in the last few years, the evidence we've seen confirms that a big number of customers still select to wager in stores - and numerous would continue to do so after the merger.
"For these clients, competitors originates from the option of shops in their regional area and it's they who might lose out from any decrease of competitors and option."
The CMA stated it was aiming to release its final report by the end of July.
Ladbrokes said: "This is a substantial step and our focus now will be on agreeing the store disposals to please the CMA." Ladbrokes shares had actually leapt 6.5% by the close of trade on Friday.