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Ladbrokes Coral in talks over takeover by GVC

From BBC - December 7, 2017

Gambling giant Ladbrokes Coral is in "detailed" talks over a takeover by online rival GVC over a deal that could value the group at up to 3.9bn.

Under the proposals, GVC - which owns the Bwin and Sportingbet brands - would hold 53.5% of the combined group.

Ladbrokes Coral became the UK's biggest High Street bookmaker following last year's merger of Ladbrokes and Coral.

The maximum price GVC will pay will depend on the outcome of the government's review of gaming machines.

Ladbrokes Coral shares jumped 23% on news of the talks, while GVC's were up by 4%.

Ladbrokes Coral brands:

GVC brands:

The Department of Culture, Media and Sport has said it will cap the size of stakes gamblers can make on fixed-odds betting terminals, amid concerns they may harm vulnerable people.

Ministers proposed that bets on the machines be cut from a maximum of 100 a spin to somewhere between 2 and 50.

GVC and Ladbrokes Coral said that the review could impact on the profitability of Ladbrokes Coral's UK business.

Under the proposed takeover deal, GVC will pay 160.9p for each Ladbrokes Coral share, which would value the company at 3.1bn.

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