Britain's largest bookmaker, Ladbrokes, has expanded its empire after announcing a £375.5m takeover of the rival Coral group.

Ladbrokes Managing Director, Chris Bell, explains the background to the take-over (0'20")

It bought 833 betting shops in the UK, two greyhound race tracks and other racing interests after they were put up for sale by parent group, Bass.

Ladbrokes, which already runs 1,904 betting shops and employs 11,000 people, said most of Coral's 6,000 workforce would be retained.

The takeover of Britain's third largest bookmaker went ahead "unconditionally" because the company does not envisage any objections from the Monopolies and Mergers Commission or Office of Fair Trading.

'Few job losses'

It has agreed to sell 128 of the shops to Tote Bookmakers for £41m to overcome any objections involving unfair competition - eliminating too many Ladbrokes shops in some areas.

"Ladbrokes has had preliminary contact with the Office of Fair Trading in this regard," said a company spokesman.

The only job losses planned would be among some of the 200 head office staff employed by Coral in Barking, east London, who would be merged with Ladbrokes' base in Rayners Lane, west London.

The announcement came after days of speculation that saw Bass shares rising 11p yesterday to 944.5p while Ladbrokes' shares dipped 2.25p to 264p.

Customer choice 'preserved'

Chief Executive of Ladbroke Group's betting and gambling division, Mike Smith, said: "Racing relies on a successful betting industry for its funding and this deal will ensure both industries remain strong well into the next century.

"Through the sale of a number of shops to the Tote, we will ensure customer choice will be preserved at a local level and that the Tote itself is strengthened as a player in the off-course betting market, which will also benefit racing."

As well as the acquisition of the outlets from Ladbrokes, the Tote has bought three shops in Herefordshire and Wales from Blandford Bookmakers bringing its total of shops to 340.

New investment planned

The Ladbrokes takeover includes Coral's 833 betting shops, telephone betting and on-course facilities, 50 bookmakers in Ireland and eight in Jersey.

It also includes the Romford and Hove greyhound racing tracks and Bass's interests in Satellite Information Services.

Some 600 betting shops have closed in the last three years since the introduction of the National Lottery. Ladbrokes, which has shed 3,400 jobs, hopes to turn the tide with new investment.

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