Ladbrokes-Gala Coral deal clearance may depend upon store sales
Bookmakers Ladbrokes and Gala Coral may have to shed numerous stores if their proposed merger is to go ahead, the competition watchdog has actually stated.
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The Competition and Markets Authority said a merger of the UK's second and third largest bookies may restrict competition on the High Street.
About 350 to 400 stores might need to be sold "for the merger to be conditionally cleared", the CMA stated.
The CMA has offered till 13 June for responses to its provisional findings.
Ladbrokes runs 2,154 betting shops in Great Britain and 77 in Northern Ireland, while Gala Coral runs about 1,850 betting stores in Great Britain.
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The combined group would make it larger than current market leader William Hill.
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Martin Cave, who is chairing the CMA's query, stated: "We have actually provisionally found that the merger in between 2 of the largest bookmakers in the nation may be expected to minimize competitors and choice for consumers in a big number of areas.
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"Although online betting has actually grown significantly over the last few years, the evidence we've seen validates that a a great deal of consumers still pick to wager in shops - and many would continue to do so after the merger.
"For these consumers, competition comes from the choice of shops in their regional area and it's they who might lose from any decrease of competition and choice."
The CMA said it was intending to release its final report by the end of July.
Ladbrokes stated: "this promotion code is a substantial action and our focus now will be on concurring the store disposals to please the CMA." Ladbrokes shares had jumped 6.5% by the close of trade on Friday.
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Gala Coral stated it noted that the CMA was "provisionally minded to clear the proposed merger" which it would continue to work with the regulator on methods to achieve last clearance.
Analysis: Frank Keogh, BBC Sport racing press reporter:
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The face of Britain's wagering stores has actually transformed in the last twenty years - from smoky boltholes with horse racing dominating proceedings to shiny multi-screen sport outlets where fixed-odds wagering terminals are a huge earner.
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While critics say the casino-style devices have actually motivated problem bettors, the bookmakers insist staff are trained to look out for issues.
The bottom line is the rise of the machines has helped keep a number of these stores open in a modern-day wagering world where online gambling has mushroomed.
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And while some stores look destined to be casualties, this promotion code proposed ₤ 2.3 bn merger reveals there is plenty of money still to be made in the British wagering industry.
Analysts say the merged business will still have a dominant position even if many stores have to be offered.
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"We expect substantial expense saving will be possible because there will be vast locations of overlap and unnecessary duplication of functions across the combined company," Clayton, head of equity research at Hargreaves Lansdown.
Ladbrokes agreed the regards to a ₤ 2.3 bn all-share merger with Coral in July, and the company's investors backed the bet9ja's welcome offer in November.
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Ladbrokes-Gala Coral Deal Clearance May Depend On Shop Sales
jedolvera2282 edited this page 2025-10-20 20:37:59 +02:00