BHA objects to Ladbrokes and Coral merger

The Chief Executive of the British Horseracing Authority (BHA) has made a declaration of concern regarding the potential merger between Ladbrokes and Coral. Nick Rust has contacted the Competition and Markets Authority (CMA) to express the worries of the BHA that a merger between the two betting giants would have a significantly negative affect on the horseracing industry.

Sell Shops

The CMA started researching the proposed merger last December, in order to discover the likely outcomes of the unification of Ladbrokes and Coral. They regulatory body has found that the two organisations would likely have to sell 350 to 400 betting shops between them, in order to facilitate the creation of the new, larger company. There is a total of 659 localities that are expected to experience a significant drop in competition as a result of this move.Nick Rust wrote to Martin Cave, who is the chairman of the CMA investigation, to explain his objections to the potential merger. He explained that he believes that ‘the current investigation has not appropriately considered the impact of the proposed merger’ on the horseracing industry.BHA objects to Ladbrokes and Coral merger


Rust also expressed concern that the investigatory group has not responded to previous objections outlined by the BHA in February 2016. In addition, he said that it was ‘regrettable’ that there is a limited time period for parties such as the British Horseracing Authority to voice their opinions, especially given how important this merger could be for the horseracing industry.The BHA CEO has made reference to a past endeavour by Ladbrokes and Coral to join forces, in 1998. He said that, at that time, the merger was blocked as it was considered that they would dominate too much of the retail betting market. In 2016, it has been predicted that if the two companies combine, they will take an even bigger chunk of the market than they would have done in 1998. Consequently, Rust says that the merger must not go ahead.BHA objects to Ladbrokes and Coral merger

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