Ladbrokes-Gala Coral deal clearance may depend on store sales
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Bookmakers Ladbrokes and Gala Coral may have to shed hundreds of stores if their proposed merger is to go ahead, the competition watchdog has actually said.
The Competition and Markets Authority said a merger of the UK's 2nd and third largest bookies may limit competitors on the High Street.
About 350 to 400 stores might have to be offered "for the merger to be conditionally cleared", the yohaig code CMA said.
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The CMA has actually offered till 13 June for actions to its provisionary findings.
Ladbrokes runs 2,154 wagering stores in Great Britain and 77 in Northern Ireland, while Gala Coral operates about 1,850 betting shops in Great Britain.
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The combined group would make it larger than present market leader William Hill.
Martin Cave, who is chairing the CMA's inquiry, stated: "We have actually provisionally found that the merger between two of the largest bookmakers in the country might be expected to reduce competition and choice for clients in a a great deal of areas.
"Although online wagering has grown significantly in recent years, the evidence we have actually seen validates that a large number of clients still choose to wager in stores - and numerous would continue to do so after the merger.
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"For these clients, competition comes from the choice of stores in their area and it's they who might lose out 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 step and our focus now will be on concurring the store disposals to satisfy the CMA." Ladbrokes shares had actually jumped 6.5% by the close of trade on Friday.
Gala Coral stated it noted that the CMA was "provisionally minded to clear the proposed merger" which it would continue to deal with the regulator on ways to achieve final clearance.
Analysis: Frank Keogh, BBC Sport racing press reporter:
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The face of Britain's wagering stores has transformed in the last 20 years - from smoky boltholes with horse racing controling procedures to shiny multi-screen sport outlets where fixed-odds wagering terminals are a huge earner.
While critics state the casino-style devices have actually encouraged problem bettors, the bookies insist personnel are trained to watch out for concerns.
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The bottom line is the increase of the makers has helped keep much of these stores open in a modern-day betting world where online gaming has mushroomed.
And while some stores look predestined to be casualties, this promotion code proposed ₤ 2.3 bn merger shows there is lots of money still to be made in the British betting industry.
Analysts state the merged business will still have a dominant position even if numerous stores need to be offered.
"We expect substantial cost saving will be possible because there will be huge areas of overlap and unneeded duplication of functions across the combined service," said Steve Clayton, head of equity research study at Hargreaves Lansdown.
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agreed the regards to a ₤ 2.3 bn all-share merger with Coral in July, and the business's shareholders backed the deal in November.
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11 August 2015
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Ladbrokes-Gala Coral Deal Clearance May Depend On Shop Sales
tiaesmond91389 edited this page 2025-10-22 15:15:01 +08:00