Bookmakers plan to merge to make £2.3bn company
Ladbrokes has announced plans to merge with Gala Coral in a deal which will value the new company at £2.3bn.
The bookmaker will overtake market leader William Hill as the largest in the UK, combining Ladbrokes’ 2,100 shops with Coral’s 1,845.
Ladbrokes is offering 10% of the company, 93 million shares, to investors to finance the deal.
Ladbrokes chairman Peter Erskine said the merger was a “major strategic step for Ladbrokes”.
He said: “Together, we will create a leading betting and gaming business. The transaction will provide an attractive opportunity to generate considerable value for both sets of shareholders, through significant operating synergies and a strong cash flow profile.”