CMA confirms shop closure requirement for Ladbrokes-Coral deal
The UK’s Competition and Markets Authority has confirmed that Ladbrokes and Gala Coral must sell around 350-400 shops in order to complete their planned merger.
UK.- The announcement is the Competition and Markets Authority’s (CMA) final report on the subject, which differs from its provisional findings published in May because the situation has developed from Ladbrokes and Gala Coral possibly having to sell 350-400 shops, to the confirmation that the actual sale of those shops is required.
The sales must be approved by the CMA and be “substantially completed” before the merger can go ahead. The CMA said the deal could “lead to a worsening of the offer made to customers at both a local and national level,” and identified 642 local areas where the merger would be likely to cause a substantial lessening of competition.
Martin Cave, Inquiry Chair at CMA, said: “Competition comes from the choice of shops in their local area and they would lose out from any reduction of competition and choice. Discounts and offers of free bets to individual customers are two of the ways betting shops respond to local competition which could be threatened by the merger. Such a widespread reduction in competition at the local level could also worsen those elements that are set centrally, such as odds and betting limits.”
Cave also said that even though online betting has grown substantially in recent years, a significant proportion of customers still choose to bet in shops and many will continue to do so after the merger.
Gala Coral said: “We welcome the announcement by the CMA that the merger of the Coral Group with Ladbrokes PLC can proceed subject to the sale of between 350-400 shops. Discussions with potential buyers can now accelerate, and we remain on track to complete the merger in the autumn.”
According to the latest Gambling Commission statistics, Gala Coral operates 1835 premises in Great Britain, whilst Ladbrokes operates 2150, giving them a total of 3985 premises and a 45 percent share of the market.
