Online Gambling Firms Gala Coral and Ladbrokes Talking Merger

Published Tuesday, June 23, 2015 - Online-Casinos.com
Online Gambling Firms Gala Coral and Ladbrokes Talking Merger

The online gambling industry has seen many changes over the years with small firms getting big and big firms getting even bigger. A recent announcement that two large and respected gambling firms are talking about merging comes as no surprise to anyone keeping up with the issues that U.K. gambling service provider Ladbrokes has been dealing with. Recently it was reported that Ladbrokes was looking to divest itself of holdings in Ireland and now Ladbrokes and Gala Coral have confirmed that they are in talks over a possible merger.

Statements issued by both firms indicate the arrangement would involve Ladbrokes and Gala Coral-operated Coral Retail, Eurobet Retail and the online sector of the firm’s operations. The Financial Times recently said that the talks are still in the preliminary stage and there are issues over price and corporate structure should the merger go through.  Ladbrokes said that the proposed new entity will seek a listing on the London Stock Exchange and could offer shares in the new enterprise to boost the firm’s bottom line.

The newly appointed Ladbrokes CEO Jim Mullen who would lead the merged entity commented on the deal, “Since becoming CEO my focus has been on a more aggressive plan to build digital scale and grow our recreational customer base across all channels, which is key to creating a more sustainable and growing Ladbrokes,” Mullen continued to add, “My plans are well advanced and I look forward to presenting them to shareholders. A merger with Gala Coral could create a combined business with significant scale and has the potential to generate substantial cost synergies, creating value for both companies’ shareholders. The board has not yet concluded whether a transaction is strategically attractive and can be delivered to shareholders on appropriate terms.”

Gala Coral, added, “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.”

 

 

 

 

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