GVC Holdings, the online gambling giant, has agreed to pay up to £4 billion for the Ladbrokes Coral group, creating one of the largest betting firms in the world.
It is expected that Ladbrokes Coral’s Glaswegian chief executive Jim Mullen will leave the business upon completion of the deal.
The acquisition comes after lengthy talks between the parties. It will see Isle of Man-based GVC acquire the share capital of Ladbroke Coral at a cost of 32.7p per share and 0.141 shares in GVC.
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Ladbrokes Coral shareholders will also receive a “contingent entitlement” of up to a further 42.8p, which is dependent on the result of a government review into the use of fixed odds betting terminals.
GVC said the deal had “compelling strength and scale” with cost savings expected to be in the region of £100 million.
The board of the enlarged group will comprise Lee Feldman as chairman, Kenneth Alexander as Chief executive, Paul Bowtell as chief financial officer and non-executive directors drawn from the current GVC board.
Mr Alexander, said: “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.”