UK: Ladbrokes, Gala Coral announce £2.3 billion merger

UK-based gambling rivals Ladbrokes and Gala Coral announced their anticipated merger Friday, a combination that will create Britain’s largest bookmaker. The new company, called Ladbrokes Coral, will have a net revenue of £2.1 billion, EBIDTA of £392 million, and a market cap of £2.3 billion, according to a press release issued by Ladbrokes.

“This is a major strategic step for Ladbrokes which firmly accelerates our strategy to improve the customers’ experience and build recreational scale. Ladbrokes and Coral are two highly complementary businesses, with rich heritage and brand presence across the UK and internationally,” said Peter Erskine, Chairman of Ladbrokes.

He added, “Together, we will create a leading betting and gaming business combining strong brands with an attractive multi-channel offering and an extensive national and international coverage. The transaction will provide an attractive opportunity to generate considerable value for both sets of shareholders, through significant operating synergies and a strong cash flow profile.”

Full content: Globes

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.