Leading UK gambling group, Ladbrokes, approached Sportingbet, another leading UK gambling group, a couple of months ago requesting them to open negotiations with regards to a possible acquisition and the two groups are currently still in the process of talks.
New rules were introduced in the UK recently relating to Mergers and Acquisitions whereby the option is given to target companies to advise potential buyers of a 28-day deadline bid. The Ladbrokes and Sportingbet acquisition has a deadline bid hanging over the negotiation table giving Ladbrokes less than a month to decide whether or not it intends proceeding with a firm offer to purchase Sportingbet. The deadline date of October 17th may, however be postponed by a request to the exchange so that formal consent can be given beyond the October 17th deadline.
Ladbroke’s interest in Sportingbet seems to stem from the latter’s excellent track record in delivering significantly better margins than their pears and the fact that Sportingbet is a well-established and reputable internet gambling platform.
Ladbrokes is one of the UK’s most established gambling companies and runs over 2,100 betting shops in the country.
The industry is expecting to hear more news about the Ladbrokes and Sportingbet deal in the next few weeks.