GVC Ladbrokes Coral Merger Talks Fail Again

Published Wednesday, August 23, 2017 - Online-Casinos.com
GVC Ladbrokes Coral Merger Talks Fail Again

In the online gambling industry survival of the fittest is the name of the game and in the highly competitive space merging with or acquiring competitors is believed to be an effective means for both operators and suppliers to meet the challenging environment head on. New regulatory requirements and updated tax systems have the industry looking for ways to beat the odds and remain profitable. As an example the government regulatory body in the U.K. regulatory has recently proposed that free plays and other deals offered to online gambling customers will be taxed from August 2017.

Late last year the merger talks between the gambling giants Ladbrokes Coral Group and GVC collapsed. Ladbrokes-Coral was created earlier in the year through a merger of the existing Ladbrokes and Gala Coral brands. Now a report has revealed that the renewed talks have once again stalled. GVC Holdings has failed in its latest approach for Ladbrokes-Coral.  Discussions concerning the deal reportedly worth up to £3.6bn (€3.9bn/$4.6bn) have ended for the time being. GVC had valued the firm at around 140p per share, or £2.7bn. The Financial Times said GVC depending on the outcome of a regulatory review allegedly proposed a boost of about 50p per share, which could have pressed the value of the company  up to £3.6bn.

GVC’s successfully took over bwin.party for an estimated £1.1bn in 2015 with the aim to do the same with the Ladbrokes Coral Group. GVC’s original bid undervalued the company. It has been suggested that this was one of the main reasons why its proposal was rejected by Ladbrokes Coral Group.  

Neither Ladbrokes Coral Group representatives or any officials from GVC Holdings have commented on the demise of the talks. Ladbrokes Coral has established roots in the terrestrial gambling world and GVC has made a name in the online gambling sector so a merger could be beneficial for either gambling operator.   

 

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