The UK Competition and Markets Authority (CMA) has given its final consent to the proposed merger between gaming operators Ladbrokes and Gala Coral.
The approval of the Competition and Markets Authority has completed the second phase of the two companies’ merger. After investigating the deal once again, it has resolved its concerns related to competition issues in the country and finally provided its approval of the sale of 360 licensed betting outlets of Ladbrokes and Gala Coral to their competitors Stan James, Betfred and Bet21.
The UK government department announced that each of the business transer agreements between the two parties of the merger and Betfred, Stan James and Bet21 were relevant to the divestment requirements set by the Authority. Now the Competition and Markets Authority has given the green light to the agreement between Ladbrokes and Gala Coral to complete their £2.7-billion merger in case that no further chances are made to the betting shops divestment.
On July 26th, the Competition and Markets Authority published its conclusions on the merger and officially stated that the deal could proceed in case that the two companies dispose of 350 to 400 betting shops. The UK non-ministerial government department determined that the deal would be allowed to be finalised when this requirement is met by the companies and the divestment process was complete.
Several months later, in the middle of October, Ladbrokes and Gala Coral found the most suitable buyers for their betting outlets. In order to meet the requirements set by the Competition and Markets Authority, the two companies announced they are to sell a total of 322 shops to Befred and 37 shops to Stan James. Later, the one shop remaining was subsequently sold to Bet21.
The Chief Executive Officer of Gala Coral Carl Leaver commented on the CMA’s approval, saying that he was very happy with the fact that the government department had given its final consent to the deal with Ladbrokes. Mr. Leaver explained that now with the final obstacle cleared, the two companies could realise the “significant value” available to the investors of both companies.
The management teams of Ladbrokes and Gala Coral are expected to announce combined corporate outlines to the combined entity’s policy and strategy. The joint venture is to be listed on the London Stock Exchange as a single company. When it comes to the governance of the combined company, the current Chief Executive Officer of Ladbrokes – Jim Mullen – is to remain as CEO of the new entity. Gala Coral’s Carl Leaver, on the other hand, is expected to be appointed to the position of Executive Deputy Chairman for a period of 12 months.
- Author
Olivia Cole
