The deal will result in a betting firm that is worth £2.3 billion and will become the largest combined online and retail betting firm in the United Kingdom. The new company name will be Ladbrokes Coral, and will reportedly have revenues of £2.1 billion, with earnings of £392 million.
Ladbrokes is financing the merger by issuing 93 million shares to new investors, giving up roughly 10% of the company.
Ladbrokes CEO Jim Mullen will remain the head of the new company, while Gala Coral's Carl Leaver will be the Executive Deputy Chairman for 12 months after the deal is completed.
Commenting on the agreement Ladbrokes Chairman Peter Erskine said, “This is a major strategic step for Ladbrokes which firmly accelerates our strategy to improve the customers’ experience and build recreational scale. Ladbrokes and Coral are two highly complementary businesses, with rich heritage and brand presence across the UK and internationally."
“Together, we will create a leading betting and gaming business combining strong brands with an attractive multi-channel offering and an extensive national and international coverage."