ladbrokes-gala-coral-deal-clearance-may-depend-on-shop-sales

Ladbrokes-Gala Coral deal clearance may depend on shop sales
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Bookmakers Ladbrokes and Gala Coral might need to shed hundreds of stores if their proposed merger is to proceed, the competition watchdog has stated.
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The Competition and Markets Authority said a merger of the UK's second and third biggest bookmakers might limit competitors on the High Street.

About 350 to 400 stores might have to be offered "for the merger to be conditionally cleared", the CMA stated.
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The CMA has actually provided till 13 June for responses to its provisionary findings.
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Ladbrokes runs 2,154 wagering stores in Great Britain and 77 in Northern Ireland, while Gala Coral operates about 1,850 wagering stores in Great Britain.
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The combined group would make it larger than current market leader William Hill.
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Martin Cave, who is chairing the yohaig code CMA's inquiry, stated: "We've provisionally discovered that the merger between two of the largest bookies in the country might be anticipated to decrease competitors and option for customers in a a great deal of local areas.

"Although online betting has actually grown substantially recently, the evidence we have actually seen confirms that a large number of customers still select to wager in shops - and many would continue to do so after the merger.

"For these consumers, competitors originates from the choice of stores in their city and it's they who could lose from any decrease of competitors and option."

The CMA said it was aiming to release its last report by the end of July.

Ladbrokes stated: "This is a considerable step and our focus now will be on agreeing the shop disposals to satisfy the yohaig code 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 attain last clearance.

Analysis: Frank Keogh, BBC Sport racing press reporter:
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The face of Britain's wagering stores has changed in the last twenty years - from smoky boltholes with horse racing dominating proceedings to shiny multi-screen sport outlets where fixed-odds betting terminals are a big earner.

While critics state the casino-style machines have actually encouraged issue gamblers, the bookmakers insist staff are trained to watch out for concerns.

The bottom line is the rise of the devices has actually assisted keep much of these stores open in a modern-day wagering world where online gaming has mushroomed.

And while some stores look destined to be casualties, this promotion code proposed ₤ 2.3 bn merger shows there is lots of cash still to be made in the British betting industry.

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

"We anticipate considerable cost saving will be possible since there will be vast areas of overlap and unnecessary duplication of functions throughout the combined company," stated Steve Clayton, head of equity research study at Hargreaves Lansdown.

Ladbrokes concurred the regards to a ₤ 2.3 bn all-share merger with Coral in July, and the yohaig code business's investors backed the handle November.
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struck by writedowns

11 August 2015
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