Ever hungry GVC eyes another major meal in Ladbrokes

Fresh off their acquisition of Cozy Games, GVC Holdings are aiming an even bigger fish to snap-up this week, as the investment company looks to buy out Ladbrokes Coral. Many in the online casino world are not happy with the practices of GVC – they tend to see every major gambling enterprise solely to make a profit – especially the way they go about buying up all the competition. Understandably, Ladbrokes Coral may have a rather different view on the matter, especially when the deal being mooted is worth around £3.9 billion.

Causing concern

The deal is already in the discussion phase, as was confirmed by Ladbrokes this week. Of course, the announcement means that shares in Britain’s largest bookmaker rose dramatically, by as much as 25%. However, whether the deal goes ahead may ultimately be down to the UK Government, more specifically their review of Fixed Odds Betting Terminals. This issue has caused concern amongst several major bookies, with the amount players can wager on those terminals likely to be cut from £100 to between £2 and £50. That would represent a major drop in income for the bookies in question.

Low Mood

If the damage from the FBOT law change is minimal, GVC Holdings are thought to be interested in paying a cash/shares deal, entitling them to 46.5% of the operation. Ladbrokes only recently underwent a merger, with Coral (another major UK high street bookie), so the mood amongst players at Ladbrokes isn’t high.

Bank Loan Secured

Most of the major online casino sites and companies are considering the idea of mergers, and GVC Holdings seems to be snapping them up like there’s no tomorrow. Having already secured a 7-year bank loan to acquire Cozy Games, it remains to be seen how much they are likely to have to shell out to acquire Ladbrokes Coral.