ladbrokes-in-merger-talks-with-gala-coral-group

Ladbrokes in merger talks with Gala Coral Group
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Bookmaker Ladbrokes has said it is in talks with the board of Gala Coral Group over a possible merger.
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An bet9ja's welcome offer would produce the UK's greatest bookmaker with nearly 4,000 High Street shops.

The discussions concern integrating Ladbrokes with Coral Retail, and Gala Coral's online firms.
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Ladbrokes said there was no certainty that the talks would result in a deal, and possible terms and timings were also yet to be agreed.

Shares in Ladbrokes increased more than 11% after the statement.

"A merger with Gala Coral might create a combined service with considerable scale and has the prospective to create significant expense synergies, creating value for both business' investors," president Jim Mullen said.

If the offer goes ahead, it would see the merged group overtake William Hill as the biggest UK bookie, uniting around 2,100 stores from Ladbrokes and 1,845 from Coral.
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The merger talks do not include Gala's 132-strong bingo organization.

Mr Mullen added that the firm's board has yet to decide whether an bet9ja's welcome offer would be "tactically attractive" and whether it could be "provided to shareholders on appropriate terms."

The company stated that the offer, if finished, could be categorized as a reverse takeover of Ladbrokes.

Ladbrokes formerly attempted to buy Coral in 1998, but its planned takeover was obstructed by the government.
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The then Trade and Industry Secretary Peter Mandelson said a merger would result in "a weakening of price competition at the national level" and a decrease in consumer option.
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Earlier this year, Ladbrokes reported a large fall in pre-tax profit for 2014, from ₤ 68m to ₤ 38m, and stated that it anticipated to close 60 UK stores this year.
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Those strategies would be untouched by any handle Coral Group.

Job loss fears at Ladbrokes Ireland
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21 April 2015

Gala Coral Group
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