Ladbrokes in merger talks with Gala Coral Group

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

An bet9ja's welcome offer would create the UK's biggest bookmaker with almost 4,000 High Street shops.

The discussions issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.

Ladbrokes stated there was no certainty that the talks would cause an bet9ja's welcome offer, and possible terms and timings were also yet to be concurred.

Shares in Ladbrokes increased more than 11% after the yohaig code statement.

"A merger with Gala Coral might create a combined company with considerable scale and has the yohaig code prospective to generate considerable cost synergies, creating worth for both companies' shareholders," president Jim Mullen stated.

If the offer proceeds, it would see the merged group overtake William Hill as the biggest UK bookie, uniting around 2,100 stores from Ladbrokes and 1,845 from Coral.

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

Mr Mullen added that the firm's board has yet to choose whether an offer would be "tactically appealing" and whether it might be "provided to shareholders on proper terms."

The company said that the bet9ja's welcome offer, if finished, might be classified as a reverse takeover of Ladbrokes.

Ladbrokes previously attempted to buy Coral in 1998, however its planned takeover was obstructed by the government.

The then Trade and Industry Secretary Peter Mandelson said a merger would cause "a weakening of cost competition at the national level" and a reduction in customer choice.

Earlier this promotion code year, Ladbrokes reported a big 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 offer with Coral Group.

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Gala Coral Group