UK gambling operators Ladbrokes and Gala Coral were conditionally approved to complete their proposed merger. The newly formed company, Ladbrokes Coral, has been asked to sell up to 400 betting shops across the United Kingdom. The UK’s Competition and Markets Authority (CMA), gave the go-ahead to the £2.3-billion deal on Friday, 20 May 2016.
The CMA said in its findings that the merger between the two operators, which are presently the second and third largest ones across the nation, may result in rivalry concerns arising across the UK. The CMA pointed out on Friday that the company needs to sell up to 400 betting shops in order for the merger to be completed provisionally.
Currently, Gala Coral manages 1 850 betting venues around Great Britain. Its fellow gambling operator Ladbrokes, operates 77 betting shops in Northern Ireland and 2 154 retail venues in Great Britain. With their joint business, the merged group will become the largest chain of betting venues in the UK, therefore overtaking rival bookie William Hill, who operates nearly 2400 shops, which has opposed the merger.
Ladbrokes Coral commented on CMA’s findings by saying that they show a significant breakthrough in the whole merger process. The operator further added that it will now focus on working with the CMA to move the merger deal forward. The operator has already started looking for potential buyers to buy the mentioned number of betting shops.
Commenting on the merger, Gala Coral said in a Friday statement that it, too, will continue working with the CMA in order to agree to the necessary solutions for the merger’s go-ahead.
Credit Suisse analyst commented by saying that there were fears that the merger may be red-flagged due to competition concerns across the United Kingdom.
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