A combination of GVC, which owns online gambling platforms including Partypoker and Sportingbet, and betting-shop operator Ladbrokes Coral could spark even more consolidation in the sector. Ladbrokes Coral, whose traditional betting shops in the U.K.’s town centers are fading, would get more exposure to the expanding digital gaming business, while GVC could reach more potential customers for its online platforms.
The merger would follow previous combinations like that of Paddy Power and Betfair as well as Ladbrokes with Coral. In another possible deal, William Hill said last month that it was in initial negotiations to combine its Australian subsidiary with the CrownBet subsidiary of Crown Resorts.
Speculation about a combination of GVC and Ladbrokes emerged last year. Under terms of the possible transaction disclosed Thursday, GVC shareholders would hold 53.5% of the merged entity. GVC Chief Executive Officer Kenny Alexander would serve as CEO.
The companies said they would combine via a scheme of arrangement, a U.K. merger process under which 75% of voting shareholders of the target company must approve a deal.
Kenneth Alexander of GVC would be the CEO of the merged entity. “This deal makes complete strategic rationale. We’ve repeatedly said we were interested in consolidation. I think this deal has a clever structure,” he said.
Source: GMB / Bloomberg
