Ladbrokes-Gala Coral Deal Clearance May Depend On Shop Sales
Ladbrokes-Gala Coral deal clearance might depend on store sales
Bookmakers Ladbrokes and Gala Coral might need to shed hundreds of stores if their proposed merger is to go on, the competitors watchdog has stated.
The Competition and Markets Authority said a merger of the UK's 2nd and 3rd biggest bookies might restrict competition on the High Street.
About 350 to 400 stores might have to be offered "for the merger to be conditionally cleared", the CMA said.
The CMA has provided till 13 June for actions to its provisionary findings.
Ladbrokes operates 2,154 wagering stores in Great Britain and 77 in Northern Ireland, while Gala Coral operates about 1,850 betting shops in Great Britain.
The combined group would make it larger than present market leader William Hill.
Martin Cave, who is chairing the CMA's inquiry, said: "We've provisionally found that the merger between 2 of the biggest bookies in the country might be anticipated to lower competition and option for clients in a large number of areas.
"Although online wagering has grown considerably recently, the proof we've seen verifies that a large number of consumers still choose to wager in shops - and many would continue to do so after the merger.
"For these clients, competition originates from the option of shops in their area and it's they who might lose from any reduction of competition and choice."
The CMA said it was aiming to release its last report by the end of July.
Ladbrokes stated: "This is a considerable action and our focus now will be on agreeing the store disposals to satisfy the CMA." Ladbrokes shares had jumped 6.5% by the close of trade on Friday.
Gala Coral said it noted that the CMA was "provisionally minded to clear the proposed merger" which it would continue to deal with the regulator on methods to accomplish final clearance.
Ladbrokes-Gala Coral deal clearance might depend on store sales
Bookmakers Ladbrokes and Gala Coral might need to shed hundreds of stores if their proposed merger is to go on, the competitors watchdog has stated.
The Competition and Markets Authority said a merger of the UK's 2nd and 3rd biggest bookies might restrict competition on the High Street.
About 350 to 400 stores might have to be offered "for the merger to be conditionally cleared", the CMA said.
The CMA has provided till 13 June for actions to its provisionary findings.
Ladbrokes operates 2,154 wagering stores in Great Britain and 77 in Northern Ireland, while Gala Coral operates about 1,850 betting shops in Great Britain.
The combined group would make it larger than present market leader William Hill.
Martin Cave, who is chairing the CMA's inquiry, said: "We've provisionally found that the merger between 2 of the biggest bookies in the country might be anticipated to lower competition and option for clients in a large number of areas.
"Although online wagering has grown considerably recently, the proof we've seen verifies that a large number of consumers still choose to wager in shops - and many would continue to do so after the merger.
"For these clients, competition originates from the option of shops in their area and it's they who might lose from any reduction of competition and choice."
The CMA said it was aiming to release its last report by the end of July.
Ladbrokes stated: "This is a considerable action and our focus now will be on agreeing the store disposals to satisfy the CMA." Ladbrokes shares had jumped 6.5% by the close of trade on Friday.
Gala Coral said it noted that the CMA was "provisionally minded to clear the proposed merger" which it would continue to deal with the regulator on methods to accomplish final clearance.