Gambling providers Ladbrokes and Coral have agreed to sell a total of 359 betting outlets in order to complete their merger. The merger, which is estimated to cost the two operators £2.3-billion, will only be completed once the two companies have sold the high street betting outlets. Stan James and rival operators Betfred will buy the sites in question for an estimated amount of £55.5 million.
Under the purchase agreement, Betfred will acquire 322 high street betting shops for £55 million and Stan James, which is predominantly known for its online business, will secure 37 shops for £500,000.
Ladbrokes and Coral to use the money to settle debt
The two operators also announced that Coral would sell 174 betting shops and Ladbrokes will dispose of 185. According to Casino News Daily, each gambling provider will receive an amount matching to the profitability of the shops sold. Both companies announced that they would use the money to settle their debt.
Currently, the two gambling providers manage a collection of 3 700 betting shops. Once the merger is completed, the newly formed Ladbrokes Coral will become the largest chain to operate high street betting shops across the United Kingdom.
According to previous estimates by financial services company, Morgan Stanley, the newly formed company will hold a 45% market share in the UK.
