Announcement expected this week
Merger negotiations which began in June this year between Gala Coral and Ladbrokes (see previous InfoPowa reports) are about to bear fruit, according to the London publication CityAM, which reported Monday that an announcement on the deal is expected this week.
The merger of the second and third largest gambling groups in the UK would create a powerhouse worth GBP 3.5 billion that eclipses market leader William Hill plc, the newspaper notes.
Ladbrokes, currently valued at GBP 1.2 billion, is expected to issue new shares to buy Gala, which is owned by a collective of private equity investors including Apollo Global Management, Candover Investments and Cerberus Capital Management.
Gala Coral Group believes that a merger with Ladbrokes "has the potential to be strongly value accretive for both companies' shareholders".
The news comes on the heels of 888 Holdings' successful GBP 898 million bid for rival Bwin.Party last week.
Ladbrokes and Gala Coral have not yet commented on the report that a deal is imminent. Back in 1998 a Ladbrokes attempt to acquire Gala was stifled by a Labour government veto on grounds that it had the potential to be anti-competitive.
Online Casino News Courtesy of Infopowa