Ladbrokes and Coral win approval to merge

LADBROKES and Coral will look to sell hundreds of sites to assuage competition concerns after regulators confirmed that the merger of the two bookmakers could go ahead.

The Competition and Markets Authority (CMA) gave the tie-up of Ladbrokes and Coral the green light, concluding that the disposal of between 350 and 400 shops to “one or more” buyers would resolve its worries about the deal.

It is understood that rival bookies Betfred and Boylesports and a number of private equity firms are already in talks with Ladbrokes and Coral about snapping up sites.

The CMA’s decision follows an investigation of the merger by the regulator, which in May provisionally concluded that up to 400 shop sales – around one-10th of the combined estate – would be necessary because without them the merger would result in a “substantial lessening of competition” in 642 areas.

It is a relief for Ladbrokes and Coral because some analysts had forecast they might be forced to sell more than 1,000 shops, which would have threatened the rationale behind the merger.

The deal is a major gamble by Ladbrokes’ boss, Jim Mullen, who will lead the combined company and has been tasked with reviving Ladbrokes’ fortunes.