It’s been on the cards since June but Ladbrokes and Gala Coral have now unveiled a deal that is set to create the UK’s largest bookmaker.
Merger will go ahead
Ladbrokes announced on Friday that the merger was going ahead in a deal that will create a £2.3billion gambling giant. It’s expected that the combined company will overtake William Hill as being the country’s biggest bookmaker. The deal will bring together 2,100 Ladbrokes and 1,845 Coral shops to surpass the 2,300 outlets owned by William Hill. However, it is expected that the merged company will have to close some of its shops to stay in line with regulations on competition. 
Ladbrokes chairman Peter Erskine said: “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. 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.” Jim Mullen, chief executive of Ladbrokes, will keep his position while Gala Coral boss Carl Leaver will be appointed executive deputy chairman for 12 months after completion of the deal. 
New company name will be Ladbrokes Coral
The merged company will be listed under the name Ladbrokes Coral on the London Stock Exchange. However, both brands will retain their own identity and continue to operate separately. Carl Leaver commented: “We’ll both continue to deliver as standalone businesses, separately, but will be stronger together. We’ll close the gap with competitors much more quickly.” The deal includes Coral Retail, the UK bookmaking business, Gala Coral’s Eurobet division in Italy and Coral’s online portion but not the 132-site Gala bingo business. Ladbrokes Coral anticipates net revenues of £2.1 billion and underlying earnings of £392 million. Management expects the deal to bring savings of £65million a year.