The UK Competition and Markets Authority has said that competition concerns regarding the proposed merger between Ladbrokes and Gala Coral could be resolved with the sale of “around 350 to 400 shops.”
The CMA said: “The group of independent panel members investigating the merger has looked in detail at the large number of areas where Ladbrokes and Coral shops compete.
“The group has identified 659 local areas where it provisionally found that the merger may be expected to result in a substantial loss of competition, which could lead to a worsening of the offer made to customers at both a local and national level.”
Were it determined to be a suitable remedy to these competition concerns, any such divesture would need to be substantially completed before the merger can go ahead, the CMA said.
In response, Gala Coral said in a statement that it welcomed news that the CMA “is provisionally minded to clear the proposed merger between Coral Group and Ladbrokes subject to agreeing appropriate remedies.
“Gala Coral will continue to work with the CMA in order to agree these remedies,” the company said.
