Gala Coral Ladbrokes Gambling Merger Possible

Published Monday, July 11, 2016 - Online-Casinos.com
Gala Coral Ladbrokes Gambling Merger Possible

Since the online gambling industry’s early beginnings there have been many mergers and acquisitions that have seen small online casino enterprises bought and developed by bigger operators. When large gambling operators merge to form even bigger entities the smaller operators have a harder time competing and succeeding in the industry.

The U.K.’s Sunday Times news recently reported that a planned merger between the online and offline gambling operators Ladbrokes and Gala Coral may soon be approved. The agreement was first mentioned in June of 2015 in the Financial Times when Gala Coral, which is owned by private equity groups Candover, Cinven and Permira, commented, “Gala Coral Group believes that a merger with Ladbrokes has the potential to be strongly value accretive for both companies’ shareholders. Under the leadership of the current management team, Gala Coral Group has executed a successful turnaround which has delivered continuing strong growth.” This agreement is set to lead to the creation of a gambling services business valued at more than £2 billion (€2.3 billion/$2.6 billion).

Although talks are still ongoing and despite the news report, the two companies have not received full approval from the UK Competition and Market Authority (CMA). In May the CMA said that both operators would need to sell as many as 500 shops for the deal to proceed. Ladbrokes said recently in an update that although it is continuing talks with Gala Coral, there is still no guarantee that a deal will transpire.

The company stated, “Shareholders are advised that there can be no certainty that the discussions between Ladbrokes and Gala Coral will lead to any agreement concerning the possible merger or as to the timing or terms of any such agreement and there can be no assurance that, even if reached, any such agreement would be completed,”

Uncertainty in business does not help the stock value and this delay is sure to cause some confusion among investors.

 

 

 

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