CMA to review GVC/Lads Coral takeover
Competition watchdog opens preliminary consultation but Ladbrokes Coral expects no roadblocks
The Competition and Markets Authority (CMA) has opened a consultation on GVC’s proposed takeover of Ladbrokes Coral, the competition watchdog announced Wednesday.
The up-to £4bn deal was originally scheduled to close in Q1 or Q2, but could be pushed back, with the CMA asking for responses to its consultation by 21 February, before a decision by 6 April.
A Ladbrokes Coral spokesperson told EGR the phase 1 consultation was akin to the CMA doing its due diligence, essentially asking stakeholders if there is any need for a further investigation into competition concerns.
The Ladbrokes Coral merger, for example, went straight to a phase 2 investigation because the competition concerns were obvious.
And Ladbrokes Coral was unconcerned by the CMA’s announcement yesterday, with a spokesperson saying: “No-one expects this to go any further as the deal doesn’t create any kind of competitive imbalance”.
The share price of both firms was essentially unmoved by the announcement.
For more details on GVC’s plans for Ladbrokes Coral once the deal is completed, read EGR’s exclusive interview with Kenny Alexander.