Ladbrokes in merger talks with Group

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

An bet9ja's welcome offer would produce the UK's greatest bookmaker with nearly 4,000 High Street shops.

The conversations issue integrating Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms.

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

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

"A merger with Gala Coral could produce a combined organization with significant scale and has the potential to generate substantial expense synergies, producing worth for both companies' shareholders," president Jim Mullen said.

If the bet9ja's welcome offer proceeds, it would see the merged group surpass William Hill as the most significant UK bookmaker, combining around 2,100 shops from Ladbrokes and 1,845 from Coral.

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

Mr Mullen included that the firm's board has yet to decide whether an bet9ja's welcome offer would be "strategically attractive" and whether it might be "provided to shareholders on appropriate terms."

The company said that the deal, if completed, might be classified as a reverse takeover of Ladbrokes.

Ladbrokes formerly tried to buy Coral in 1998, however its organized takeover was obstructed by the federal government.

The then Trade and Industry Secretary Peter Mandelson stated a merger would result in "a weakening of price competition at the national level" and a reduction in consumer option.

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

Those plans would be untouched by any handle Coral Group.

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Gala Coral Group