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 produce the UK's most significant bookmaker with nearly 4,000 High Street shops.

The conversations issue combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.

Ladbrokes said there was no certainty that the talks would cause an offer, and possible terms and timings were likewise yet to be concurred.

Shares in Ladbrokes rose more than 11% after the announcement.

"A merger with Gala Coral might produce a combined service with significant scale and has the prospective to generate substantial expense synergies, producing value for both companies' investors," chief executive Jim Mullen said.

If the offer proceeds, it would see the merged group surpass William Hill as the greatest UK bookmaker, combining 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 firm's board has yet to decide whether a deal would be "tactically appealing" and whether it might be "provided to shareholders on appropriate terms."

The firm said that the offer, if completed, might be categorized as a reverse takeover of Ladbrokes.

Ladbrokes formerly tried to purchase Coral in 1998, however its scheduled takeover was obstructed by the federal government.

The then Trade and Industry Secretary Peter Mandelson stated a merger would result in "a weakening of price competition at the nationwide level" and a decrease in customer choice.

Earlier this promotion code year, Ladbrokes reported a large fall in pre-tax profit for 2014, from ₤ 68m to ₤ 38m, and stated that it expected to close 60 UK stores this year.

Those strategies would be unaffected by any handle Coral Group.

Job loss fears at Ladbrokes Ireland

21 April 2015

Gala Coral Group