Ladbrokes-Gala Coral Deal Clearance May Depend On Shop Sales
Ladbrokes-Gala Coral deal clearance may depend upon shop sales
Bookmakers Ladbrokes and Gala Coral may need to shed numerous shops if their proposed merger is to go ahead, the competition guard dog has actually said.
The Competition and Markets Authority stated a merger of the UK's second and third biggest bookmakers might limit competition on the High Street.
About 350 to 400 stores might need to be sold "for the merger to be conditionally cleared", the CMA said.
The CMA has provided up until 13 June for responses to its provisionary findings.
Ladbrokes runs 2,154 betting shops in Great Britain and 77 in Northern Ireland, while Gala Coral operates 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 query, said: "We've provisionally discovered that the merger in between two of the largest bookies in the country might be anticipated to minimize competitors and option for clients in a large number of cities.
"Although online betting has actually grown substantially in recent years, the evidence we have actually seen confirms that a large number of consumers still select to wager in shops - and numerous would continue to do so after the merger.
"For these customers, competition originates from the choice of stores in their area and it's they who could lose out from any decrease of competitors and choice."
The CMA stated it was intending to release its last 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 leapt 6.5% by the close of trade on Friday.
Ladbrokes-Gala Coral deal clearance may depend upon shop sales
Bookmakers Ladbrokes and Gala Coral may need to shed numerous shops if their proposed merger is to go ahead, the competition guard dog has actually said.
The Competition and Markets Authority stated a merger of the UK's second and third biggest bookmakers might limit competition on the High Street.
About 350 to 400 stores might need to be sold "for the merger to be conditionally cleared", the CMA said.
The CMA has provided up until 13 June for responses to its provisionary findings.
Ladbrokes runs 2,154 betting shops in Great Britain and 77 in Northern Ireland, while Gala Coral operates 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 query, said: "We've provisionally discovered that the merger in between two of the largest bookies in the country might be anticipated to minimize competitors and option for clients in a large number of cities.
"Although online betting has actually grown substantially in recent years, the evidence we have actually seen confirms that a large number of consumers still select to wager in shops - and numerous would continue to do so after the merger.
"For these customers, competition originates from the choice of stores in their area and it's they who could lose out from any decrease of competitors and choice."
The CMA stated it was intending to release its last 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 leapt 6.5% by the close of trade on Friday.