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Ladbrokes-Gala Coral deal clearance may depend on shop sales
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Bookmakers Ladbrokes and Gala Coral may need to shed hundreds of stores if their proposed merger is to proceed, the competitors guard dog has said.
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The Competition and Markets Authority stated a merger of the UK's second and 3rd largest bookies may limit competitors on the High Street.

About 350 to 400 shops might need to be offered "for the merger to be conditionally cleared", the CMA said.

The CMA has actually provided up until 13 June for reactions to its provisional findings.

Ladbrokes operates 2,154 betting stores in Great Britain and 77 in Northern Ireland, while Gala Coral runs about 1,850 betting 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 questions, stated: "We've provisionally discovered that the merger in between two of the biggest bookmakers in the country might be anticipated to reduce competition and choice for consumers in a a great deal of regional areas.

"Although online betting has grown considerably recently, the evidence we have actually seen verifies that a a great deal of customers still choose to bet in shops - and numerous would continue to do so after the merger.

"For these customers, competition comes from the option of shops in their area and it's they who could lose out from any decrease of competitors and option."

The CMA stated it was aiming to publish its last report by the end of July.
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Ladbrokes stated: "This is a significant step and our focus now will be on concurring the yohaig code shop disposals to please the CMA." Ladbrokes shares had leapt 6.5% by the close of trade on Friday.

Gala Coral said 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 final clearance.
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Analysis: Frank Keogh, BBC Sport racing reporter:

The face of Britain's betting stores has changed in the last 20 years - from smoky boltholes with horse racing dominating proceedings to glossy multi-screen sport outlets where fixed-odds wagering terminals are a huge earner.

While critics state the casino-style devices have actually motivated issue bettors, the staff are trained to watch out for concerns.
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The bottom line is the increase of the makers has assisted keep much of these shops open in a modern-day betting world where online betting has mushroomed.

And while some shops look predestined to be casualties, this promotion code proposed ₤ 2.3 bn merger reveals there is plenty of money still to be made in the yohaig code British betting market.

Analysts say the merged company will still have a dominant position even if many stores need to be offered.

"We expect significant cost conserving will be possible since there will be large locations of overlap and unnecessary duplication of functions throughout the combined company," said Steve Clayton, head of equity research at Hargreaves Lansdown.
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Ladbrokes agreed the terms of a ₤ 2.3 bn all-share merger with Coral in July, and the business's investors backed the handle November.
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Ladbrokes revenues hit by writedowns

11 August 2015
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