The boards of Ladbrokes and Coral have agreed on a merger deal that will have a net revenue of £2.1 billion and a marker capitalisation of £2.3 billion ($3.5 billion).
Ladbrokes Coral plc will see Ladbrokes shareholders own 51.75 percent of the enlarged company with Gala Coral shareholders issued with 48.25 percent of the share capital.
“This is a major strategic step for Ladbrokes which firmly accelerates our strategy to improve the customers’ experience and build recreational scale,” said Peter Erskine, chairman of Ladbrokes.
The new betting giant will be led by Ladbrokes CEO Jim Mullen, with Gala Coral CEO Carl Leaver operating as Executive Deputy Chairman for a term of 12 months post Completion.
Completion is conditional upon the approval of Ladbrokes’ existing shareholders and clearance from the Competition and Markets Authority.
“The CMA will have jurisdiction to assess the deal under the UK Merger Regime and the deal is conditional upon clearance. The competitive dynamic has changed dramatically since the 1998 MMC Report and there is now significantly more competition from the online and mobile segments, from betting exchanges and on the high street, in particular with Betfred and Paddy Powergrowing aggressively in recent years,” a statement said.