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 create the UK's biggest bookie with almost 4,000 High Street stores.
The discussions issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes stated there was no certainty that the talks would lead to an offer, and possible terms and timings were likewise yet to be concurred.
Shares in Ladbrokes rose more than 11% after the statement.
"A merger with Gala Coral could create a combined organization with substantial scale and has the prospective to create significant expense synergies, developing value for both business' investors," chief executive Jim Mullen stated.
If the offer goes on, it would see the merged group overtake William Hill as the greatest UK bookie, combining around 2,100 stores from Ladbrokes and 1,845 from Coral.
The merger talks do not include Gala's 132-strong bingo business.
Mr Mullen included that the company's board has yet to decide whether an offer would be "strategically appealing" and whether it could be "delivered to investors on suitable terms."
The company stated that the offer, if finished, could be classified as a reverse takeover of Ladbrokes.
Ladbrokes formerly attempted to buy Coral in 1998, however its organized takeover was obstructed by the federal government.
The then Trade and Industry Secretary Peter Mandelson stated a merger would lead to "a weakening of cost competitors at the nationwide level" and a decrease in customer choice.
Earlier this year, Ladbrokes reported a big fall in pre-tax earnings for 2014, from ₤ 68m to ₤ 38m, and stated that it anticipated to close 60 UK shops this year.
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 create the UK's biggest bookie with almost 4,000 High Street stores.
The discussions issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes stated there was no certainty that the talks would lead to an offer, and possible terms and timings were likewise yet to be concurred.
Shares in Ladbrokes rose more than 11% after the statement.
"A merger with Gala Coral could create a combined organization with substantial scale and has the prospective to create significant expense synergies, developing value for both business' investors," chief executive Jim Mullen stated.
If the offer goes on, it would see the merged group overtake William Hill as the greatest UK bookie, combining around 2,100 stores from Ladbrokes and 1,845 from Coral.
The merger talks do not include Gala's 132-strong bingo business.
Mr Mullen included that the company's board has yet to decide whether an offer would be "strategically appealing" and whether it could be "delivered to investors on suitable terms."
The company stated that the offer, if finished, could be classified as a reverse takeover of Ladbrokes.
Ladbrokes formerly attempted to buy Coral in 1998, however its organized takeover was obstructed by the federal government.
The then Trade and Industry Secretary Peter Mandelson stated a merger would lead to "a weakening of cost competitors at the nationwide level" and a decrease in customer choice.
Earlier this year, Ladbrokes reported a big fall in pre-tax earnings for 2014, from ₤ 68m to ₤ 38m, and stated that it anticipated to close 60 UK shops this year.