Betting company Ladbrokes (LAD) will be hoping the major investment programme announced as part of its planned merger with rival Gala Coral can stem its profit falls of recent years.
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If the proposed merger goes through, the combined Ladbrokes Coral would have a market capitalisation of around £2.3bn, virtually double the current value of Ladbrokes - while net revenue is expected to jump from £1.2bn to £2.1bn. Management cites online growth potential as a key factor in the merger, as well as a broader international business and cost synergies of at least £65m a year. This will be driven in part by Ladbrokes closing 60 shops this year.