After 18 months of review, the UK Competition & Markets Authority recently granted final approval to the ?2 billion (US.14 billion) merger of Ladbrokes, a world leader in online betting and gaming, and Coral, a British betting shop and bingo and casino operator.
The CMA review of the merger, which began in December 2015, included a market competition study, which concluded that the operators’ combined retail portfolio would “reduce consumer choice in a number of local areas.” As a result, the operators were required to sell 359 of their betting shops, including 322 to Betfred and 37 to Stan James, for $61.77 million cash.
When the merger is complete, Ladbrokes Chief Executive Officer Jim Mullen will retain his position at the new business. Coral Chief Executive Officer Carl Leaver will become executive deputy chairman for 12 months, in charge of managing the merging of corporate synergies between the two firms.
Ladbrokes and Coral will now publish a combined corporate prospectus detailing the admission of its enlarged entity on the London Stock Exchange. The new business entity plans to register a premium listing on the London Exchange granted by the Financial Conduct Authority.
“I am delighted that the CMA has given approval to our merger with Coral. Both businesses are approaching the merger with good momentum and we are now focusing on completing the merger and delivering on the opportunities it offers,” Mullen said.
