Bookmakers Ladbrokes and Gala Coral have agreed to merge, creating a £2.3bn (€3.25bn) business which will be Britain's largest high-street betting group and better equipped to compete in the growing online market.
The latest deal in the gambling sector comes only a week after online betting company 888 agreed a £900m takeover of rival Bwin.party.
Betting companies are responding to higher tax bills in the UK and tighter regulation of the industry.
Ladbrokes, which has struggled to keep pace with larger rival William Hill's online expansion, said it would issue new ordinary shares to existing Gala Coral shareholders representing 48.25% of the enlarged company.
Ladbrokes operates over 2,200 betting shops in the UK, while it has 196 shops here in Ireland.
Gala Coral Group is owned by a group of private equity companies including Apollo, Anchorage and Cerberus. It operates 1,800 Coral betting shops across the UK.
To help fund the deal, which came after talks were announced last month, Ladbrokes is placing 93 million new shares,r epresenting 10% of the company.
Ladbrokes Chief Executive Jim Mullen will become boss of the merged company, which will be named 'Ladbrokes Coral' and have combined revenues of £2.1bn.
Gala Coral CEO Carl Leaver will be executive deputy chairman.
