Ladbrokes Coral has been bought by rival GVC in £4bn deal

Ladbrokes Coral has agreed to be bought by GVC Holdings in a recommended deal worth up to £4bn.

The two companies will pair to become an international online and retail sports betting group. Combined, they will have more than 90 per cent of net gaming revenue generated from locally regulated and taxed markets.

Under the acquisition’s terms, for each Ladbrokes Coral Share held at the scheme record time, Ladbrokes Coral Shareholders will be entitled to 32.7 pence in cash, 0.141 ordinary GVC Shares and a contingent entitlement of up to 42.8 pence in principal value.

Kenneth Alexander, CEO of GVC, said: “The creation of one of the world’s largest listed sports betting companies, combining a portfolio of established brands, proven technology and leading market positions in multiple geographies, is a truly exciting prospect.

“GVC has a proven track record of creating shareholder value through the successful integration of acquired businesses and the GVC Board believe this transaction will create further value for our shareholders and those of Ladbrokes Coral.”

This deal comes after major pressure and recent talks between both companies to come to an agreement.

John Kelly, chairman of Ladbrokes Coral, added: “In its relatively short time as a merged entity, Ladbrokes Coral has demonstrated why scale can be so effective in this market.

“The management team have delivered a successful merger that has created a leading betting and gaming business built on strong brands in key markets. We have a multi-channel offer that utilises our retail and online businesses and offers us a promising future.”

Kelly and the Ladbrokes Coral board believe that the proposed combination with GVC will accelerate the company’s strategy in improving customer experience and driving faster growth online.