Gambling: Ladbrokes and Coral agree to merger

Following our news item last month ('Ladbrokes in talks with Gala Coral Group over possible merger') when we reported that Ladbrokes and Corals were in merger talks, (link) it has today been announced that the two are to merge.

Ladbrokes Coral will have net revenue of around £2.1 billion and underlying earnings of £392m, while the deal is expected to bring savings of £65m a year. The deal will make the new company the high street leader in the UK with a combined total of nearly 4,000 shops usurping the current high street leader, William Hill.

The merger includes Coral Retail, the UK bookmaking business, Gala Coral's 870-strong Eurobet division in Italy and Coral's online arm, but not the 132-site Gala bingo business.

However, as previously reported, completion is conditional on approval by the Competition and Markets Authority (CMA).