CMA Orders Ladbrokes-Coral To Sell High-Street Betting Shops
Published on by Becky M.
It is safe to say that the on-going merger between Ladbrokes and Gala Coral has become something of a never-ending saga. Each day a new story emerges that seems to present a new twist in the tale. With today’s offering being no different, as it seems that CMA has made it clear that should Ladbrokes and Gala Coral want to progress with the merger they are going to have to reduce the perspective joint firms high street presence. Identifying 642 local areas in which the merger could be considered detrimental to fair competition, it has been stated that between 350 and 400 betting shops must go.
Reduce Competition
The £2.3 billion deal has been under consistent investigation since being announced, with the CMA having grave concerns about what the deal would mean on a local level. Both Ladbrokes and Gala Coral have stated that they feel such concerns are unwarranted, but the final report related to the “competition” investigation is in and doesn’t make for good reading. Martin Cave (CMA Inquiry Chair) said, “We’ve found that the merger between two of the largest bookmakers in the country would reduce competition and choice for customers in a large number of local areas. Although online betting has grown substantially in recent years, the evidence we’ve seen confirms that a significant proportion of customers still choose to bet in shops – and many will continue to do so after the merger. We therefore believe that a sale of shops of this scale is needed to protect these customers”.
Looking For buyers
The ball is now in the court of Ladbrokes and Gala Coral, with each brand now accepting the decision and have both openly stated that they want the merger to move forward. In an attempt to adhere to the CMA ruling, both of the companies have announced that they are looking to locate suitable buyers for betting shops now deemed “surplus to requirements”.