Ladbrokes In Talks With Gala Coral
Big news coming out of the UK is that Ladbrokes and the Gala Group Limited are in talks over possible combining their business and listing the entity on the London Stock Exchange.
In a stamenent Ladbrokes said,” Shareholders are advised that there can be no certainty that the discussions between Ladbrokes and Gala Coral will lead to any agreement concerning the possible merger or as to the timing or terms of any such agreement and there can be no assurance that, even if reached, any such agreement would be completed.”
The idea behind the merger is to create value for both businesses by creating a business with “significant scale and the potential to generate cost synergies, creating value for both companies’ and shareholders,”
CEO of Ladbrokes Jim Mullen went on to say the board has yet to decide of the deal is “strategically attractive” and can be brought before the board.
This is not the first time the second largest bookmaker in the UK tried to buy Coral. In 1998 they were blocked by the then British trade minister Peter Mendelson on the basis that it would disadvantage punters and harm fair competition.