Ladbrokes Coral is one of the bigger names in the United Kingdom’s gambling industry. The entity is the result of a merger, a merger that has made the previously strong Ladbrokes company even stronger. Ladbrokes has definitely deserved its status as a major player in the UK’s gambling industry. After the merger, Ladbrokes Coral was poised for even further dominance. The company may very well dominate the gaming industry for years to come, but it will be doing so under different ownership. A new reverse takeover is in motion. Specifically, GVC Holdings, a top online gambling business, is seeking to gain control of Ladbrokes Coral.
Nothing has been finalized yet, but rumors about a bid are circulating in the news. The Financial Times has reported on the potential mergers, which lends more than a bit of credibility to the swirling rumors. The amount of money mentioned regarding the potential acquisition is roughly £3.2 billion. Yes, Ladbrokes Coral is a massive gaming entity and one with many assets. Revenues derived from Ladbrokes Coral’s are clearly significant. The company wouldn’t be worth £3+ billion if it wasn’t.
The assets of GVC Holdings are clearly massive as well. The decision to go forth with a takeover shows GVC Holdings wants to become one of the biggest gambling entities in all of Europe. In addition to its current assets, the takeover would bring all the Ladbrokes Coral assets into the fold.
The gambling industry in the United Kingdom and around the world is often home to a lot of unexpected news. No one really saw this attempt at a restructuring potentially occurring since both companies are involved in a restructuring. If a takeover were to happen, a third restructuring would need to occur to blend the two separate entities together. Current restructuring plans won’t work. A revision is in order and this might be costly and complex. GVC Holdings definitely finds the necessary work to be something worth the effort. A company is not likely to spend anything — much less £3.2 billion — without feeling the results are going to yield high profits.
Amazingly, Ladbrokes Coral is looking to procure Australia’s Tabcorp, a company that is already merging with another gambling company named Tatts. All of this seems to be setting the stage for a very complicated takeover, if the takeover occurs. No final decisions have been made regarding the Ladbrokes Coral/GVC Holdings merger.
