Ladbrokes-Coral, GVC merger talks break down – report
Discussions over a potential merger between Ladbrokes Coral Group and GVC have collapsed, according to the Financial Times newspaper.
The newspaper had reported that the two parties opened talks over a possible link up last week, with an initial deal valuing recently-merged Ladbrokes-Coral at £3.2 billion (€3.8 billion/$4.05 billion).
The proposal was said to be structured similarly to GVC’s successful £1.1 billion takeover of bwin.party last year, in that it was formed mostly of shares.
However, while news of the initial talks boosted shares in both companies, the apparent breakdown in negotiations led to Ladbrokes-Coral’s share price falling 5.2% on Monday, while GVC was flat.
Ladbrokes-Coral was formed earlier this year through a merger of the existing Ladbrokes and Gala Coral brands.
Neither Ladbrokes-Coral nor GVC have officially commented on the reported talks.
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