Changing of the guard as terms agreed for GVC takeover of Ladbrokes Coral

The changing of the guard in the gambling industry continued last week with the news Ladbrokes Coral have agreed to the terms of a takeover offer from online rival GVC Holdings, creating one of the sector's largest companies.

The deal will be worth up to £4 billion, with GVC, the owners of the Sportingbet and bwin brands among others, holding around 53.5 per cent of the enlarged group, which would be propelled into the FTSE 100.

The final price will depend on the government's review of FOBT stakes and prizes. The deal is based on a sliding scale, with a valuation of around £3.2 billion if stakes are cut to £2 from £100, rising to £4bn if the maximum stake is set at £50.