The merger creates one of the world's largest gambling companies.
Companies: Entain PLC, Ladbrokes Coral Group
Bookmaker Ladbrokes Coral (LON: LCL) and online gambling group GVC (LON: GVC) have come to a takeover agreement in a deal which values LCL at £3.2bn.
News of a merger between the two gambling giants first surfaced in 2016, shortly after Ladbrokes merged with Coral, with talks resuming in August this year but breaking down shortly after.
The merger between the two groups who control the likes of Eurobet, Gala, Sportingbet and Bwin, will create one of the world's largest gambling companies whose combined Revenues in FY16 totalled more than £2.3bn.
The board believes the takeover will be will be" double-digit EPS accretive from the first full year post-completion" and will save the group "not less than £100 million".
Shares in GVC were down 2% on Friday whilst LCL shares were up 1%.
GVC CEO Kenneth Alexander, who will become Chief Executive of the enlarged group, commented:
"The creation of one of the world's largest listed sportsbetting companies, combining a portfolio of established brands, proven technology and leading market positions in multiple geographies, is a truly exciting prospect.
In a dynamically evolving industry, the transaction creates an Enlarged Group with the scale, diversity, proprietary technology and management expertise to pursue many opportunities globally.
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."
