ladbrokes-gala-coral-deal-clearance-may-depend-upon-shop-sales

Ladbrokes-Gala Coral deal clearance might depend upon shop sales

Bookmakers Ladbrokes and Gala Coral might have to shed numerous shops if their proposed merger is to go on, the competition watchdog has actually stated.
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The Competition and Markets Authority said a merger of the UK's 2nd and third largest bookmakers may on the High Street.

About 350 to 400 stores may need to be offered "for the merger to be conditionally cleared", the CMA stated.

The CMA has actually given until 13 June for responses to its provisionary findings.
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Ladbrokes runs 2,154 betting shops in Great Britain and 77 in Northern Ireland, while Gala Coral operates about 1,850 wagering stores in Great Britain.

The combined group would make it larger than current market leader William Hill.

Martin Cave, who is chairing the CMA's inquiry, said: "We've provisionally discovered that the merger between two of the biggest bookies in the yohaig code country may be expected to lower competition and choice for clients in a big number of areas.

"Although online wagering has actually grown significantly over the last few years, the evidence we have actually seen validates that a big number of consumers still pick to bet in stores - and numerous would continue to do so after the merger.
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"For these customers, competitors comes from the choice of shops in their city and it's they who might lose out from any reduction of competition and option."

The CMA stated it was aiming to release its last report by the end of July.

Ladbrokes stated: "this promotion code is a considerable action and our focus now will be on concurring the store disposals to satisfy the CMA." Ladbrokes shares had leapt 6.5% by the close of trade on Friday.
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Gala Coral stated it kept in mind that the CMA was "provisionally minded to clear the proposed merger" which it would continue to work with the regulator on methods to accomplish last clearance.

Analysis: Frank Keogh, BBC Sport racing reporter:

The face of Britain's wagering shops has transformed in the last 20 years - from smoky boltholes with horse racing dominating procedures to shiny multi-screen sport outlets where fixed-odds betting terminals are a huge earner.
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While critics say the casino-style devices have actually motivated problem gamblers, the bookmakers insist staff are trained to keep an eye out for problems.

The bottom line is the rise of the machines has helped keep a lot of these shops open in a modern-day betting world where online gaming has actually mushroomed.

And while some stores look predestined to be casualties, this promotion code proposed ₤ 2.3 bn merger shows there is lots of cash still to be made in the British betting industry.

Analysts say the merged business will still have a dominant position even if numerous stores need to be offered.
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"We expect significant cost saving will be possible because there will be large areas of overlap and unnecessary duplication of functions across the combined company," stated Steve Clayton, head of equity research study at Hargreaves Lansdown.
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Ladbrokes concurred the terms of a ₤ 2.3 bn all-share merger with Coral in July, and the business's investors backed the deal in November.

Ladbrokes revenues struck by writedowns

11 August 2015
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