Ladbrokes In Merger Talks With Gala Coral Group
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Ladbrokes in merger talks with Gala Coral Group
Bookmaker Ladbrokes has stated it is in talks with the yohaig code board of Gala Coral Group over a possible merger.
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A deal would create the UK's biggest bookie with nearly 4,000 High Street stores.
the yohaig code discussions concern combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms.
Ladbrokes said there was no certainty that the talks would result in an bet9ja's welcome offer, and possible terms and timings were also yet to be concurred.
Shares in Ladbrokes rose more than 11% after the statement.
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"A merger with Gala Coral could develop a combined service with significant scale and has the yohaig code prospective to produce considerable expense synergies, creating value for both companies' shareholders," president Jim Mullen said.
If the offer proceeds, it would see the merged group surpass William Hill as the greatest UK bookmaker, 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 service.
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Mr Mullen added that the yohaig code firm's board has yet to choose whether a deal would be "tactically attractive" and whether it could be "provided to investors on appropriate terms."
The firm stated that the deal, if finished, could be categorized as a reverse takeover of Ladbrokes.
Ladbrokes formerly tried to purchase Coral in 1998, but its planned takeover was obstructed by the federal government.
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The then Trade and Industry Secretary Peter Mandelson stated a merger would result in "a weakening of price competitors at the national level" and a decrease in customer option.
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Earlier this year, Ladbrokes reported a big fall in pre-tax revenue for 2014, from ₤ 68m to ₤ 38m, and said that it anticipated to close 60 UK stores this year.
Those plans would be by any deal with Coral Group.
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