Ladbrokes, Gala Coral to sell 359 shops ahead of merger

LONDON (Reuters) - British Ladbrokes and Gala Coral said they agreed to sell 359 shops for 55.5 million pounds to rivals, in a deal which will reduce their footprint and pave the way for competition authorities to allow their merger to proceed.

The pair were told in July they must sell around 350 to 400 shops in order to obtain clearance for their proposed merger.

Ladbrokes agreed the terms of a 2.3 billion pound all-share merger with Coral in July 2015, and shareholders backed the deal in November.

Under the shop sale deal, which is conditional upon completion of the merger, rival bookmaker Betfred will buy 322 shops for 55 million pounds, while Stan James will purchase 37 shops for 500,000 pounds.

(Reporting by Sarah Young, Editing by Paul Sandle)