UK’s Competition Markets Authority (CMA) is finally confirming the £2.3 billion merger of Ladbrokes and Gala Coral Group, but on one condition: They still need to offload as many as 400 shops.
According to the gambling watchdog, getting rid of the shops to “one or more buyers” will resolve competition worries over their merger, several media outlets reported.
Announced Tuesday morning, CMA’s decision follows an in-depth investigation of the merger by the regulator, which in May provisionally concluded that its necessary for the two gambling giants to sell up to 400 of its shops—around one-tenth of the combined estate—to lessen the competition in 642 local areas.
CMA inquiry chairman Martin Cave said that even though “online betting has grown substantially in recent years,” the regulator found that “a significant portion of customers still choose to bet in shops,” and they will continue to do so even after the merger pushes through.