A merger between GVC and Ladbrokes Coral may be closer than most analysts thought according to report in the UK newspaper the Financial Times.
The report said the two companies have already agreed on the shape of a new executive team and board and the merger could be complete as early as this month.
Such a merger would coincide with the outcome of a UK regulatory review due this month and could set off a new round of gambling firm mergers in the country as firms try to deal with intensified competition. According to various reports, William Hill, Paddy Power Betfair, The Stars Group, 888 Holdings, Rank Group and Jackpotjoy have all reportedly been working on strategies to stay competitive in the market.
In August, the paper reported that GVC had offered up to £3.6bn ($4.7 billion) to take over Ladbrokes, but those negotiations collapsed. Kenny Alexander, GVC’s chief executive, then said he will not consider any deal until after the review is released.
However, last month GVC announced double-digit revenue and earnings growth in the first six months of 2017 and indicated a desire to seek more acquisitions.
“Strategically, the organic growth potential remains exciting and through further product development and increased marketing investment we are well placed to pursue these opportunities,” Alexander said in reporting the revenue figures. “However, we operate in an industry where regulation and increased taxation present headwinds and these are best addressed through scale and diversification. The combination of our people, proprietary technology and proven M&A track record, means GVC is well positioned to play a significant role in the industry’s ongoing consolidation.”
In another story, Gibraltar-based 888 Holdings has seen a drastic dip in its stock value after the Sintius Group—which represents the family of 888’s late co-founder, Aharon Shaked—sold its stake in the business for around £112m.
Sinitus sold just under 46.3m shares in 888 at 243p each. The company’s stock fell by 6 percent after the sale was announced.
