Ladbrokes, Coral must sell 350 to 400 shops to get merger clearance, says CMA

26th Jul 2016 09:01

(ShareCast News) - The Competition and Markets Authority has confirmed that bookmakers Ladbrokes and Gala Coral will have to sell 350 to 400 shops in order to obtain clearance for their proposed merger.The regulator said on Tuesday that it has identified 642 local areas where the merger could result in a substantial lessening of competition.To address these concerns and preserve competition, the CMA said Ladbrokes and Coral must sell around 350 to 400 betting shops to one or more suitably qualified up-front buyers, which must be approved by the regulator.Inquiry chair Martin Cave said: "We've found that the merger between two of the largest bookmakers in the country would reduce competition and choice for customers in a large number of local areas."It is now for the parties to propose a divestment package and one or more suitable purchasers for the CMA to approve."Ladbrokes and Coral agreed the terms of a £2.3bn merger in July last year.At 0953 BST, Ladbrokes shares were up 0.3% to 134.60p.