Ladbrokes in merger talks with Gala Coral Group

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

A deal would develop the UK's biggest 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 said there was no certainty that the talks would result in a deal, and possible terms and timings were also yet to be agreed.

Shares in Ladbrokes rose more than 11% after the announcement.

"A merger with Gala Coral might develop a combined service with substantial scale and has the possible to create substantial cost synergies, developing value for both business' investors," president Jim Mullen said.

If the bet9ja's welcome offer goes ahead, it would see the merged group overtake William Hill as the biggest UK bookmaker, bringing together around 2,100 shops from Ladbrokes and 1,845 from Coral.

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

Mr Mullen added that the has yet to choose whether a deal would be "strategically attractive" and whether it could be "provided to investors on proper terms."

The firm said that the bet9ja's welcome offer, if completed, could be classified as a reverse takeover of Ladbrokes.

Ladbrokes previously tried to purchase Coral in 1998, however its planned takeover was obstructed by the yohaig code federal government.

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

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

Those strategies would be untouched by any handle Coral Group.

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Gala Coral Group