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.
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The conversations issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's .
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Ladbrokes stated there was no certainty that the yohaig code talks would result in an bet9ja's welcome offer, and possible terms and timings were likewise yet to be concurred.
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Shares in Ladbrokes increased more than 11% after the statement.
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"A merger with Gala Coral might develop a combined business with considerable scale and has the prospective to generate substantial expense synergies, producing value for both companies' shareholders," president Jim Mullen said.
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If the deal proceeds, it would see the merged group overtake William Hill as the greatest UK bookmaker, bringing together around 2,100 shops from Ladbrokes and 1,845 from Coral.

The merger talks do not include Gala's 132-strong bingo service.

Mr Mullen added that the company's board has yet to choose whether an bet9ja's welcome offer would be "strategically appealing" and whether it could be "delivered to investors on appropriate terms."

The firm said that the deal, if completed, might be categorized as a reverse takeover of Ladbrokes.
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Ladbrokes formerly attempted to purchase Coral in 1998, but its planned takeover was blocked by the government.
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The then Trade and Industry Secretary Peter Mandelson said a merger would cause "a weakening of cost competition at the nationwide level" and a reduction in consumer choice.
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Earlier this year, Ladbrokes reported a big fall in pre-tax revenue 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.
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Job loss fears at Ladbrokes Ireland

21 April 2015

Gala Coral Group