Ahead of merger completion

Ladbrokes-Coral will have to sell 400 shops, CMA says

Ladbrokes and Gala Coral will have to sell “around 350 to 400 shops” to obtain clearance for their proposed £2.2bn merger, the Competition and Markets Authority has confirmed.
2016-07-26
Reading time 47 seg
Ladbrokes and Gala Coral will have to sell “around 350 to 400 shops” to obtain clearance for their proposed £2.2bn merger, the Competition and Markets Authority has confirmed.

The CMA said the deal could “lead to a worsening of the offer made to customers at both a local and national level,” and identified 642 local areas where the merger would be likely to cause “a substantial lessening of competition”.

The sales must be approved by the CMA and be “substantially completed” before the merger can go ahead. The decision was expected after the CMA’s provisional findings published in May.

The figure is around ten per cent of the combined group’s portfolio of betting shops, but is lower than the bookmakers had initially feared

Ladbrokes and Coral agreed the proposed merger last summer. The rise in onling gambling, combined with stricter regulation and rising taxation, has prompted a wave of consolidation that has affected almost all the major players in the UK betting industry.

Earlier this week William Hill, previously the clear leader in the industry, said it had been approached by Rank Group and 888 Holdings after falling behind in the race for online growth.

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