Ladbrokes in merger talks with Gala Coral Group

Bookmaker Ladbrokes has said it is in talks with the board of Gala Coral Group over a possible merger.

A deal would develop the UK's biggest bookmaker with almost 4,000 High Street shops.

The discussions concern combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms.

Ladbrokes stated there was no certainty that the talks would cause a deal, and possible terms and timings were likewise yet to be agreed.

Shares in Ladbrokes rose more than 11% after the statement.

"A merger with Gala Coral could produce a combined service with significant scale and has the prospective to generate substantial cost synergies, developing worth for both companies' investors," primary executive Jim Mullen said.

If the yohaig code deal goes ahead, it would see the merged group overtake William Hill as the biggest UK bookie, combining around 2,100 stores from Ladbrokes and 1,845 from Coral.

The merger talks do not consist of Gala's 132-strong bingo organization.

Mr Mullen added that the firm's board has yet to decide whether an bet9ja's welcome offer would be "tactically attractive" and whether it could be "delivered to shareholders on appropriate terms."

The firm stated that the yohaig code bet9ja's welcome offer, if completed, could be classified as a reverse takeover of Ladbrokes.

Ladbrokes formerly tried to purchase Coral in 1998, but its planned takeover was obstructed by the federal government.

The then Trade and Industry Secretary Peter Mandelson said a merger would lead to "a weakening of cost competitors at the national level" and a decrease in consumer choice.

Earlier this year, Ladbrokes reported a large fall in pre-tax revenue for 2014, from ₤ 68m to ₤ 38m, and said that it anticipated to close 60 UK stores this promotion code year.

Those strategies would be untouched by any deal with Coral Group.

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