Ladbrokes Coral could cut 6% of workforce due to GVC takeover
The planned takeover of Ladbrokes Coral by GVC Holdings could result in job losses of around 6% of staff, the groups have announced.
New details of the move have been published in a document elaborating on the terms of the takeover by GVC worth up to £3.9bn, with both companies saying that job losses of around 1,600 people could be triggered.
That figure accounts for around 6% of the current combined 26,800 workforce.
Most of the job losses are expected in the UK, although further details have not been released, although the cuts are not expected to occur until next year.
Ladbrokes Coral retail outlets are not expected to be affected.
Jobs in marketing, customer service, and administration are the areas most likely to be affected. It is also possible the Ladbrokes Coral’s head office, based in London, could close, with positions moving into GVC’s headquarters.
More positive news did emerge from the Ladbrokes Coral camp as well however, with the group posting a trading update showing a 12% rise in revenues in the final quarter of 2017. The group also gave shareholders a dividend payout of £78m.
Competition and Markets Authority to consult on the deal
The deal could cost GVC Holdings up to £3.9bn. However, the total cost is dependent on the government’s impending decision on the stakes of fixed-odds betting terminals, which look likely to be slashed from £100 to £2.
Such a cut would affect the value of the takeover, which could fall by around £800m.
The deal is also to be investigated by the Competitions and Markets Authority (CMA). The watchdog launched its merger inquiry last week and has opened a consultation, with responses to be received by 21 February and a decision to be taken by 6 April.
The move is not expected to cause any problems, with a Ladbrokes Coral statement referring to the consultation as the CMA simply doing its due diligence. The phase 1 consultation will ask whether the merger could result in less competition within markets in the UK.
Speaking about the investigation, a spokesperson from Ladbrokes Coral said:
No-one expects this to go any further as the deal doesn’t create any kind of competitive imbalance. – Spokesperson, Ladbrokes Coral.