Ladbrokes and Coral, which have more than 3,500 betting shops across the UK, only completed their merger about a year ago to continue the rapid consolidation of the UK gaming sector that has has also seen Paddy Power and Betfair join forces. Alexander said there was a "compelling strategic rationale" for a deal, which has the potential to create "material shareholder value". Potential cost savings of about £100million have been mooted.