Ladbrokes Coral and GVC’s multibillion-pound merger could finally be set in stone this month.
As the Financial Times newspaper revealed, the two companies are closer towards signing a deal for a multibillion-pound merger than it was previously known and have already come to a conclusion in terms of how the new executive team and bored should look like.
This move could lead to a new wave of further Merger and Acquisition deals among the gaming industry. Especially since the merger would occur with the publishing of a regulatory review in the UK at the end of this month. It could inspire competitors to merge also in order to prevent the loss of market share.
As reported, the companies Paddy Power Betfair, 888 Holdings, Jackpotjoy, Rank Group, The Stars Group and William Hill have all just recently set up their own battle plans.
As David Jennings, Davy’s head of leisure research, stated, “After the review, it won’t be the commencement of talks, it will be the continuation of them.”
As the Financial Times reported in August, GVC offered up to £3.6bn (€4.0bn/$4.7bn) to merge with Ladbrokes Coral. But after the negations turned out to be unsuccessful, GVC’s chief executive, Kenny Alexander announced that there will be no considerations for any other deal till the review is launched.
Last month, GVC published that the company was able to achieve a growth in their earnings and increased their revenue in around a double-digit within the first six month of 2017. The results were released in order to seek for more acquisitors.
Kenny Alexander stated, “Strategically, the organic growth potential remains exciting and through further product development and increased marketing investment we are well placed to pursue these opportunities.
“However, we operate in an industry where regulation and increased taxation present headwinds and these are best addressed through scale and diversification. The combination of our people, proprietary technology and proven M&A track record, means GVC is well positioned to play a significant role in the industry’s ongoing consolidation.”
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