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 create the UK's greatest bookmaker with almost 4,000 High Street shops.
The conversations concern integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms.
Ladbrokes stated there was no certainty that the talks would result in an offer, and possible terms and timings were likewise yet to be agreed.
Shares in Ladbrokes rose more than 11% after the statement.
"A merger with Gala Coral could create a combined company with considerable scale and has the possible to create considerable cost synergies, developing value for both companies' shareholders," president Jim Mullen said.
If the deal goes on, it would see the merged group overtake William Hill as the most significant UK bookie, bringing together around 2,100 shops from Ladbrokes and 1,845 from Coral.
The merger talks do not consist of Gala's 132-strong bingo company.
Mr Mullen added that the company's board has yet to choose whether an offer would be "strategically appealing" and whether it might be "provided to shareholders on suitable terms."
The company stated that the deal, if completed, could be classified as a reverse takeover of Ladbrokes.
Ladbrokes formerly tried to purchase Coral in 1998, but its organized 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 national level" and a decrease in consumer option.
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 stores this year.
Those strategies would be untouched by any deal with 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 create the UK's greatest bookmaker with almost 4,000 High Street shops.
The conversations concern integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms.
Ladbrokes stated there was no certainty that the talks would result in an offer, and possible terms and timings were likewise yet to be agreed.
Shares in Ladbrokes rose more than 11% after the statement.
"A merger with Gala Coral could create a combined company with considerable scale and has the possible to create considerable cost synergies, developing value for both companies' shareholders," president Jim Mullen said.
If the deal goes on, it would see the merged group overtake William Hill as the most significant UK bookie, bringing together around 2,100 shops from Ladbrokes and 1,845 from Coral.
The merger talks do not consist of Gala's 132-strong bingo company.
Mr Mullen added that the company's board has yet to choose whether an offer would be "strategically appealing" and whether it might be "provided to shareholders on suitable terms."
The company stated that the deal, if completed, could be classified as a reverse takeover of Ladbrokes.
Ladbrokes formerly tried to purchase Coral in 1998, but its organized 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 national level" and a decrease in consumer option.
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 stores this year.
Those strategies would be untouched by any deal with Coral Group.