Ladbrokes Coral Merger Faces Delays in Provisional Decision

The Ladbrokes Coral merger has been delayed by the UK’s Competition Markets Authority (CMA). The proposed merger of UK gambling giants Ladbrokes Casino and Gala Coral Group Ltd is facing delays in the provisional decision from the UK’s Competition Markets Authority (CMA). CMA was expected to announce its decision on 18 April 2016 or soon after, but its timeline is now highly doubtful. According to an industry source who spoke to City A.M, CMA is still expected to announce its final decision on the merged Ladbrokes-Coral on 24 June 2016.

City A.M’s source claimed a potential interruption had arisen over how many of the two operators’ combined 4 000 betting shops would need to be sold to address competition concerns. UK watchdog may require the two operators to sell as many as 1 000 betting shops to ensure a healthy and competitive market for retail customers, a source told City A.M.

Is the merger of Ladbrokes Coral a good move?

The CMA is expected to identify which betting shops will be sold to smaller competitors, rather than simply close to avoid competition. With an expected 4 000 betting shops from the two operators, the newly formed company Ladbrokes-Coral would overtake its rival William Hill, who has under 2 400 betting shops in the UK. However, William Hill has opposed the merger. Hill’s high street dominance would be surpassed should the Ladbrokes-Coral has given a final go-ahead.