Issuing a corporate submission regarding the planned £2.3 billion merger of Ladbrokes-Coral, William Hill has warned the UK Competitions & Markets Authority (UK CMA) that the creation of a merged enterprise will negatively undermine the overall UK betting industry.
William Hill the UK’s biggest retail bookmaker, has urged the UK CMA to terminate the tie-up of Britain’s second and third largest bookmakers.
Contesting the merger, William Hill governance believes that Ladbrokes-Coral combined portfolio of 4000 retail points would damage UK industry conditions as the market would see an uncompetitive concentration for consumers.
William Hill governance therefore states that the same context for Ladbrokes-Coral merger decline in 1998, should apply for its present tender.
The UK CMA who is currently assessing the merger, will likely enforce Ladbrokes-Coral to sell part of its combined estate portfolio, with industry analysts speculating that up to 400 – 500 retail points will be put up for sale.
Independent bookmakers Boylesports and Betfred have publically stated that they are following the Ladbrokes-Coral merger plans closely, as the operators view to strengthen their UK retail divisions.
Countering merger concerns, Ladbrokes-Coral stakeholders have stated that the growth in digital betting services has completely changed the industry landscape.
Nevertheless, William Hill governance detailed to the UK CMA that digital services “would not form a sufficiently strong constraint” on Ladbrokes-Coral “to eliminate or even significantly mitigate the loss of competition resulting from the merger”.
Source: SBC News
