ladbrokes-gala-coral-deal-clearance-may-depend-upon-shop-sales

Ladbrokes-Gala Coral deal clearance might depend upon store sales

Bookmakers Ladbrokes and Gala Coral may have to shed numerous shops if their proposed merger is to go on, the competition guard dog has said.
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The Competition and Markets Authority said a merger of the UK's second and 3rd largest bookies might limit competitors 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 provided up until 13 June for reactions to its provisional findings.
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Ladbrokes runs 2,154 wagering shops in Great Britain and 77 in Northern Ireland, while Gala Coral operates about 1,850 wagering stores in Great Britain.

The combined group would make it larger than present market leader William Hill.

Martin Cave, who is chairing the CMA's questions, stated: "We've provisionally found that the merger in between two of the biggest bookies in the country may be expected to decrease competition and choice for consumers in a a great deal of areas.
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"Although online wagering has actually grown substantially recently, the yohaig code proof we've seen verifies that a large number of consumers still select to bet in stores - and lots of would continue to do so after the merger.

"For these customers, competition comes from the option of stores in their city and it's they who might lose out from any decrease of competitors and choice."

The CMA said it was intending to publish its last report by the end of July.

Ladbrokes said: "this promotion code is a significant step and our focus now will be on concurring the store disposals to satisfy the CMA." Ladbrokes shares had jumped 6.5% by the yohaig code close of trade on Friday.

Gala Coral stated it noted that the CMA was "provisionally minded to clear the proposed merger" and that it would continue to work with the regulator on methods to attain final clearance.

Analysis: Frank Keogh, BBC Sport racing reporter:

The face of Britain's betting shops has changed in the last twenty years - from smoky boltholes with horse racing controling proceedings to glossy multi-screen where fixed-odds betting terminals are a big earner.

While critics state the casino-style devices have encouraged issue gamblers, the bookmakers firmly insist staff are trained to watch out for problems.

The bottom line is the rise of the devices has actually assisted keep a number of these stores open in a modern-day wagering world where online betting has actually mushroomed.
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And while some stores look destined to be casualties, this promotion code proposed ₤ 2.3 bn merger shows there is plenty of cash still to be made in the British wagering industry.

Analysts state the merged company will still have a dominant position even if many shops have actually to be sold.
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"We expect considerable cost conserving will be possible because there will be vast locations of overlap and unneeded duplication of functions throughout the combined business," said Steve Clayton, head of equity research at Hargreaves Lansdown.

Ladbrokes agreed the regards to a ₤ 2.3 bn all-share merger with Coral in July, and the yohaig code company's investors backed the handle November.
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Ladbrokes revenues hit by writedowns

11 August 2015
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