Ladbrokes to Merge With Smaller Rival Coral Ladbrokes to merge with smaller rival Coral Bookmakers Ladbrokes has announced it plans to combine with Gala Coral in a deal anticipated to value business at ₤ 2.3 bn. The move will take it past the present high street leader, William Hill, integrating Ladbrokes' 2,100 shops with Coral's 1,845. Current Ladbrokes president, external, Jim Mullen, will become employer of the merged business, called Ladbrokes Coral. The two firms had revealed merger talks last month. Peter Erskine, chairman of Ladbrokes, hailed the merger as a "significant strategic step for Ladbrokes". He added: "Together, we will develop a leading wagering and gaming business. The deal will offer an attractive opportunity to create considerable value for both sets of shareholders." Analysis: Jonty Bloom, BBC organization reporter The best method at looking at the challenges dealing with the merged betting giant of Ladbrokes and Coral is that they have attempted to merge in the past. In 1998 that planned offer was compressed by Peter Mandelson, the trade and industry minister at the time, on the premises that it would dominate the industry. Yet at that time the biggest risk to Ladbrokes and Coral did not even exist. Betfair is the world's largest internet-based betting exchange and it was not established till 2000. It is only one of a huge variety of online wagering business that pay lower tax bills, can compete for business both here and all over the world and face few of the repaired costs of owning countless stores on the British High Street. The rationale behind this merger is to produce a company that will stand a much better chance of contending with those online giants. To money the offer Ladbrokes will offer 93 million brand-new shares to investors, representing 10% of the business.