UK Competition and Markets Authority Investigating GVC and Ladbrokes Acquisition
An investigation into the GVC Holdings and Ladbrokes Coral Group acquisition was initiated by the UK Competition and Markets Authority. The reason for the investigation is to see if it will lead to a “substantial lessening of competition” in the UK market.
The agreement deal was made between the two groups in December. The worth of the merged group would estimate to being around $5.5 billion. It was reported last month that hopes were the deal would complete no later than the second quarter. If and when the process completes GVC shareholders would own 53% of the merged group.
Donal McCabe, Ladbrokes Coral’s Group Communications Director commented that, “this is a process you have to go through on any deal and we’re not aware there would be any competition issues.”
From now until February 21st, the CMA is asking for all opinions to be given regarding the investigation. With the massive gaming group, the agreement deal would result, the competition in the market would grow immensely, hence the trigger of the investigation and review. A final decision by the CMA is expected to be released at the beginning of April.