The Financial Times has reported that FTSE-listed GVC Holdings has failed in its attempt to takeover UK market rival Ladbrokes Coral Plc.
The business news source reports that Ladbrokes Coral governance had reviewed a £3.6 billion group takeover deal, aimed at creating ‘the outright UK gambling market leader’, by merging GVC’s digital gambling brands with Ladbrokes Coral retail and online assets.
Last December, City rumours surfaced that GVC governance had asked its financial advisors to prepare a potential bid for newly merged Ladbrokes Coral.
It appears that Ladbrokes Coral governance will not present the GVC takeover offer to its investors, as there is a firm disagreement relating to the company’s value.
Detailing further insights, The Financial Times reports that GVC governance had valued Ladbrokes Coral group assets at £2.7 billion, with a proposed incentive of 50p per share, pricing its bid at £3.6 billion.
Ladbrokes Coral governance has rejected the deal, with stakeholders close to the negotiations stating that parties are no longer in active talks. Both Ladbrokes Coral and GVC declined to comment on the bid.
Industry analysts will be monitoring this story closely, as there are concerns that further regulatory challenges and restrictions imposed by the UK government, may lead to a ‘fresh round of consolidation’ for the betting and gaming market.
At present, the governances of industry FTSE-listed bookmakers are now eagerly awaiting the UK governments industry review which is set to be published this autumn.
