GVC Fails In Latest Takeover Bid For Ladbrokes Coral
The UK gambling market has for the last few years been in consolidation mode as the largest companies from major gambling conglomerates to tackle the challenging market conditions.
Online gambling group GVC is one of those companies looking to consolidate itself alongside paddy Power and Betfair as one of the market leaders in the UK online gambling market. They are not new to being aggressive in their expansion plans and beat arch rival 888 Holdings in 2015 to acquire bwin.party in a £1.1 billion deal which was also not surprisingly the same year that Paddy Power and Betfair merged to create the largest online gambling companies on the planet.
It is been reported that GVC approached Ladbrokes Coral with a takeover offer that would have been worth as much as £3.6 billion. Sources close to the parties report that discussions are no longer active as talks broke down.
This news comes as the UK gambling industry is bracing itself for the imminent crackdown by the government which is set to include restrictions on fixed odds betting terminals which make up a large portion of the larger bookies revenues.
Last year saw GVC approach the Ladbrokes for the first time when they were completing the £2.2 billion merger with Coral.
The talks broke down according to sources for a number of reason mainly being the disagreement between the companies as to the value of the companies which is a major issue in that no one is certain as to how exactly the UK government’s crackdown on the gambling sector is expected to effect the major players.
GVC has recorded impressive growth under CEO Kenny Alexander and is currently worth around £2.3 billion pounds. Both GVC and Ladbrokes declined to comment on the failed talks but money is on a third round of merger talks to happen sometime soon.