GVC, Ladbrokes Coral merger to cost 1,600 jobs - report
Ladbrokes Coral Group could shed as many as 1,600 jobs as part of its proposed merger agreement with GVC Holdings.
The cuts will impact both head office and support staff and represent approximately 5% of the combined workforce.
Jim Mullen, currently chief executive of Ladbrokes, is among the high-profile figures who could leave the company as a result of the merger, according to The Times.
Kenny Alexander, chief executive of GVC, is likely to retain his role in the larger company, while Paul Bowtell, currently with Ladbrokes Coral, is set to become chief financial officer.
In December 2017, GVC agreed to purchase Ladbrokes Coral in a deal worth up to £4bn (€4.5bn/$5.5bn) and combine the two businesses.
However, the UK Competition and Markets Authority (CMA) last week said it is to investigate the proposed merger amid concerns it will lead to a “substantial lessening of competition” in the UK gambling market,
Meanwhile, Ladbrokes Coral has reported a 4% year-on-year rise in revenue for the 12 months through to December 31, 2017.
Digital net revenue at the company was also up by 17% in the past year, while net revenue from its European retail business increased 14%.
The firm also said that full-year group operating profit for 2017 was “at the top end of management expectations”, due to the positive revenue performance and a slightly higher level of merger synergies that anticipated.
As a result, the Ladbrokes Coral has proposed a second interim dividend for the 12-month period of four pence per share.
Meanwhile, Ladbrokes Coral has also reported a positive start to 2018, saying that trading has “started well” and is inline with management expectations.
Related article: CMA to probe mooted GVC, Ladbrokes Coral deal