February Completion for Betfair and Paddy Power Merger

January 21st, 2016

SHARE

February Completion for Betfair and Paddy Power Merger

February will bring a monumental change for the global gambling industry. Multinational gambling operators Betfair and Paddy Power are set to finalise a £5 billion merger and form one of the world’s largest betting companies.

Betfair and Paddy Power first announced their plans to merge in August 2015, revealing that Paddy Power investors would control 52% of the new entity and that Betfair investors would control the remaining 48%. The newly combined operator is expected to start trading on the London and Dublin stock exchanges from 2 February 2016. Meanwhile, Betfair is waiting on British high court approval for its proposed scheme of arrangement – an agreement between Betfair and its shareholders.

Merger Approved in UK and Ireland

The final confirmation came when the Republic of Ireland’s Competition and Consumer Protection Commission (CCPC) approved the merger on Friday 15 January. In a statement, the regulatory body asserted its belief that the merger “will not substantially lessen competition”.

The merger was approved in the UK a month earlier, with the Competition and Markets Authority (CMA) officially closing the case on 29 December, concluding that it “does not believe that the merger gives rise to a realistic prospect of a substantial lessening of competition”. The CMA supported its decision by explaining that “at least three competitors [have] a higher or similar share of supply to the merged entity.”

New Structure Outlined

The two multinational gambling operators have also unveiled their planned management structure. Former Paddy Power COO and current Betfair CEO Breon Corcoran will become CEO of the new entity, with Paddy Power CEO Andy McCue set to take the role of COO.

Both sides have agreed that Betfair Paddy Power will be headquartered in Dublin, and will continue to maintain online betting operations in more than 100 countries, as well as Paddy Power’s 588 betting shops located throughout the UK and Ireland.

A Smooth Merger

The seven-month timeframe of the Betfair-Paddy Power merger is running ahead of the March completion date that was outlined in December. Neither operator has encountered any major hurdles, and any worries about the shareholders' vote on the deal in December were quickly dispelled by a unanimous result.

An overwhelming 99.9% of Betfair shareholders voted in favour of the deal. Just two people voted in opposition of the merger, with a total of 262 in favour. The outcome of the Paddy Power vote was more or less the same, with a 99.9% approval from shareholders, who were also informed that they would receive an €80 million special dividend before the deal is completed.

The Other Big Merger: Ladbrokes and Gala Coral

The successful merging of Betfair and Paddy Power could be followed by another high-profile deal if the Ladbrokes and Gala Coral - owners of all Gala and Coral offerings - merger receives approval this June. Ladbrokes and Gala Coral announced their plans in July last year, but have had a harder time securing their £2.3 billion deal, with Ladbrokes forced to publicly defend the plans after shareholder Dermot Desmond described it as “wrong”.

In spite of the Irish billionaire's claims that the deal will be more favourable for Gala Coral, the proceedings appear to be ticking along – though it remains to be seen whether all parties will reach a happy agreement in 2016.

Casino News Articles


Bet365 Reaches the Coveted £2 Billion Revenue Summit
Bet365 Reaches the Coveted £2 Billion Revenue Summit

Analysts say online gambling is in a robust financial state – an assertion supported by the latest annual figures emanating from bet365, which announced a 39% increase in profits for 2017, coupled wit ... Read More

American Gaming Association Announces Newest Chairman
American Gaming Association Announces Newest Chairman

The chairman at the American Gaming Association (AGA) is one of the most influential in the casino industry in the USA, so the election of a new officer to the position is typically met with great ant ... Read More

More Than a Dozen States to Consider Online Gambling in 2018
More Than a Dozen States to Consider Online Gambling in 2018

Online gambling is in a confusing place in the US. Some States allow it, others don't. That said, there have been some developments that suggest the blanket ban on online gaming might be coming to an ... Read More

LeoVegas Acquires Budding Royal Panda for €100 Million
LeoVegas Acquires Budding Royal Panda for €100 Million

The casino industry is gearing up for ambitious growth over the next 12 months and the sector is seeing some interesting sales and acquisitions taking place as it heads towards the end of 2017. One of ... Read More

LeoVenture Launches Following IMP Reband by LeoVegas
LeoVenture Launches Following IMP Reband by LeoVegas

Online casino and bookmaker LeoVegas is planning to place a bigger focus on investing in start-up software and gaming companies. It will do so through a small subsidy it owns, Independent Mobile Produ ... Read More

Age of the Gods Live Roulette Already Crowns £600k Jackpot
Age of the Gods Live Roulette Already Crowns £600k Jackpot

Less than a month after launching, the Age of Gods Live Roulette game has already landed one lucky mobile player a huge jackpot worth nearly £600,000. The jackpot is shining the spotlight on this new ... Read More

Casino Navigation

Newsletter

Sign up for the free Gambling.com Newsletter to stay on top of all the best bonuses!
We will never share or misuse your personal information. Privacy Policy

Latest Casino News

CasinoGuides

Country Guide

DISCLAIMER: Online Wagering is illegal in some Jurisdictions. It is your responsibility to check your local regulations before playing online. GDC Trading Ltd takes no responsibility for your actions.
© 2011-2017 GDC Trading Limited. All Rights Reserved. Gambling.com is a registered trademark of GDC Trading Limited.
Terms and Conditions   |   Privacy Policy

facebookDownload_on_the_App_Store_Badge_US-UK_RGB_blk_4SVG_092917twitter