Ladbrokes in Merger Talks with Gala Coral Group Ladbrokes in merger talks with Gala Coral Group Bookmaker Ladbrokes has stated it is in talks with the board of Gala Coral Group over a possible merger. An offer would produce the UK's biggest bookie with almost 4,000 High Street stores. The conversations concern combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online firms. Ladbrokes stated there was no certainty that the talks would result in a deal, and possible terms and timings were likewise yet to be concurred. Shares in Ladbrokes rose more than 11% after the statement. "A merger with Gala Coral could develop a combined organization with substantial scale and has the prospective to generate substantial cost synergies, producing worth for both companies' shareholders," chief executive Jim Mullen stated. If the deal proceeds, it would see the merged group overtake William Hill as the most significant UK bookie, bringing together around 2,100 shops from Ladbrokes and 1,845 from Coral. The merger talks do not consist of Gala's 132-strong bingo service. Mr Mullen added that the firm's board has yet to decide whether a deal would be "tactically attractive" and whether it might be "provided to shareholders on proper terms." The company said that the deal, if completed, might be classified as a reverse takeover of Ladbrokes. Ladbrokes formerly attempted to buy Coral in 1998, but its planned takeover was obstructed by the government. The then Trade and Industry Secretary Peter Mandelson said a merger would cause "a weakening of price competitors at the national level" and a decrease in consumer option. Earlier this year, Ladbrokes reported a big fall in pre-tax earnings for 2014, from ₤ 68m to ₤ 38m, and stated that it expected to close 60 UK shops this year. Those strategies would be unaffected by any handle Coral Group.