Ladbrokes and Gala Coral agree terms on mega-merger
Two firms will combine to create new UK betting and gaming giant pending approval from competition authorities
Ladbrokes and Gala Coral have agreed terms on a transformational merger which will create a new egaming heavyweight called Ladbrokes Coral, the two firms announced this morning.
Pending approval from both shareholders and the UK Competition and Markets Authority, the combined firm will have annual digital revenues of approximately £400m and a market cap of £2.3bn.
The two operators also confirmed reports yesterday that the enlarged business would be headed up by Ladbrokes CEO Jim Mullen (pictured) with Gala Coral COO Andy Hornby to take on a similar position at Ladbrokes Coral.
According to the two firms, a combination will give the new entity the potential to drive faster online growth and extract greater value from a regulated international portfolio of Spain, Italy, Australia, and Belgium.
“Together, we will create a leading betting and gaming business combining strong brands with an attractive multi-channel offering and an extensive national and international coverage” Peter Erskine, Ladbrokes chairman, said.
The deal will see Ladbrokes issue Gala Coral shares amounting to 48.75% of the enlarged business with Ladbrokes holding the majority stake.
And as reported by eGaming Review last month, the two firms said the combined company would continue to operate the two brands in the UK.
“Together, the two businesses will have a strong digital presence with market leading technology, innovation and access to significant resources to drive continued growth and deliver enhanced returns for all shareholders,” Rob Templeman, Gala Coral chairman said.
News of the merger talks were revealed last month however any deal would likely require the two firms to dispose of approximately 1,000 high street shops to satisfy the CMA.
Both Ladbrokes and Gala Coral said they were confident the merger was deliverable and were committed to working closely with the CMA in its review.
Read why both brands are set to be retained post-merger
Read more on Jim Mullen’s aggressive three-year growth strategy here