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.
A deal would develop the UK's most significant bookmaker with nearly 4,000 High Street shops.
The conversations issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes said there was no certainty that the talks would result in a deal, and possible terms and timings were likewise yet to be agreed.
Shares in Ladbrokes increased more than 11% after the statement.
"A merger with Gala Coral might produce a combined business with considerable scale and has the possible to produce significant expense synergies, creating value for both companies' shareholders," primary 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 include Gala's 132-strong bingo organization.
Mr Mullen included that the firm's board has yet to choose whether a deal would be "tactically attractive" and whether it could be "delivered to investors on suitable terms."
The firm said that the deal, if finished, could be categorized as a reverse takeover of Ladbrokes.
Ladbrokes previously tried to purchase Coral in 1998, however its organized takeover was blocked by the government.
The then Trade and Industry Secretary Peter Mandelson said a merger would lead to "a weakening of rate competition at the nationwide level" and a reduction 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 year.
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.
A deal would develop the UK's most significant bookmaker with nearly 4,000 High Street shops.
The conversations issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes said there was no certainty that the talks would result in a deal, and possible terms and timings were likewise yet to be agreed.
Shares in Ladbrokes increased more than 11% after the statement.
"A merger with Gala Coral might produce a combined business with considerable scale and has the possible to produce significant expense synergies, creating value for both companies' shareholders," primary 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 include Gala's 132-strong bingo organization.
Mr Mullen included that the firm's board has yet to choose whether a deal would be "tactically attractive" and whether it could be "delivered to investors on suitable terms."
The firm said that the deal, if finished, could be categorized as a reverse takeover of Ladbrokes.
Ladbrokes previously tried to purchase Coral in 1998, however its organized takeover was blocked by the government.
The then Trade and Industry Secretary Peter Mandelson said a merger would lead to "a weakening of rate competition at the nationwide level" and a reduction 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 year.