Chief executive of the British Horseracing Authority (BHA), Nick Rust has expressed his concerns regarding Ladbrokes and Gala Coral merger.
Rust said that the proposed merger between the companies will have a great impact on customers and UK’s horseracing and greyhound industries.
Speaking in a submission to the UK’s Competition and Markets Authority (CMA), Rust commented by saying that if the deal is passed, it can lead to a “deterioration” in betting odds along side with the drop in the value of media rights.
Rust, who has acted as a senior executive for both Ladbrokes and Coral, has also informed that as a result of the merger, smaller racecourses could face closure, because of the drop in the rights value they have. BHA chief executive has also suggested that the two brands, ahead of the introduction of a new system proposed for the next April, will contribute to the levy through its online business.
Yet despite all of the concerns Rust has, he does not opposes the merger. He did suggest however, that CMA had not “appropriately” taken into consideration the full range of the impact that the merger may have on the UK racing scene. Rust said that: “British racing is concerned that the approval of the merger with the current proposed remedies could significantly undermine those objectives through restriction of competition in the UK retail betting market”.
Rust comments followed CMA’s statement released in may, in which CMA provisionally ruled that because the merger may lead to competition concerns in parts of the UK, the two companies will have to sell up to 400 shops across Britain, for the deal to go through.
The CMA, which stated that the companies will have to meet its requirements in order for the merger to go ahead, has postponed the date of release of the final report by August 19. There is a chance however that the end result could be published by the end of this month.
