GVC Holdings acquired one of the largest UK bookmakers Ladbrokes Coral for 4 billion GBP
The online gaming and sports betting company GVC Holdings acquired one of the largest UK bookmakers Ladbrokes Coral for 4 billion GBP (5.4 billion USD). The UK bookmaker shareholders will receive up to 2.07 GBP for each Ladbrokes shar., representing a 19% premium. GVC Holdings offers 1.64 GBP in cash and shares, plus a conditional payment of 0.43 GBP per share. The value of the conditional right will be determined by the outcome of the regulatory review of the betting terminals by the British institutions.
This can result in a sharp cut in bets made through machines, which will reduce the revenue of station owners.
A combination of GVC, which owns online gaming platforms, including PartyPoker, Bwin and Sportingbet, and betting operator such as Ladbrokes Coral, may lead to even greater consolidation in the sector. The dealis part of the trend for gambling companies to strive for a larger scale in a business that is shifting online.
The bookmaker, whose traditional UK bets are gradually diminishing, will get more access to the digital games business, while GVC can be promoted to more potential customers for their online platforms.
The merger will follow previous combinations such as Paddy Power and Betfair as well as Ladbrokes with Coral.
Information about GVC and Ladbrokes combinations emerged last year and companies announced they are in the process of advancing on December 7th.