Ladbrokes and Gala Coral set to agree merger as soon as this week
The UK-based bookmakers Ladbrokes and Gala Coral are about to agree a merger as soon as this week, The Sunday Times reported. The newspaper did not cite a source for the claim.
Ladbrokes and Gala Coral confirmed last month that they were holding discussions regarding a potential merger. It is expected that Ladbrokes will finance the deal via a share issue, according to the newspaper.
The merged group would probably be valued at approximately GBP 3.5bn (EUR 5.04bn) and would have around 4,000 shops, making it the largest high street bookmaker in the UK, the item continued.
It is expected that the deal will attract attention from the competition regulator, the article said, noting that Ladbrokes’ attempted takeover of Gala Coral in 1998 was blocked by the UK government due to competition concerns.
Private equity groups including Cerberus and Apollo Global Management own Gala Coral.
Ladbrokes’ market capitalisation stood at GBP 1.86bn (EUR 2.68bn) at the close of trading in London on Friday, 17 July.
Sunday Times