GVC Reaches Deal to Buy Ladbrokes Coral for £4 Billion
GVC, the online gambling group, has reached a deal to buy bookmaker Ladbrokes Coral for £4 billion to create one of Britain’s largest businesses.
GVC, the operator of brands such as Foxy Bingo and Bwin, said it will pay 32.7 pence in cash and 0.141 new GVC shares for each Ladbrokes share. The exact final price will depend on the outcome of a review into fixed-odds betting terminals and it is expected in the second half of January. In 2016 Ladbrokes Coral made about £800 million from the machines but if there are restrictions placed upon them it could significantly affect revenue.
It is expected that the new company will be big enough to enter Britain’s FTSE 100 index and its chief executive would be Kenny Alexander who has described it as an “exciting prospect”. It is hoped that the deal will be complete in the first quarter of 2018.