Paddy Power and BetFair All Set For Merger
The Competition and Consumer Protection Commission has approved the proposed merger of leading betting companies, Paddy Power and Betfair, stating that the deal would not reduce competition in the betting market in Ireland.
“The Commission has formed the view that the proposed transaction will not substantially lessen competition in any market for goods or services in the state,” the Commission’s statement read.
The merger will create one of the world’s biggest gaming and betting companies and will be called Paddy Power Betfair with Paddy Power shareholders holding 52 percent of the company and Betfair shareholders holding the remaining 48 percent. The companies agreed on the £6 billion merger early in 2015 with Paddy Power shareholders approving the agreement last month at their EGM. The UK Competition and Markets Authority gave their approval in the same month.
The two companies look set to complete the deal within two weeks now that their final hurdle has been overcome. Paddy Power stated that it is aiming for the merger to go through on February 2, contingent on the British High Court approving a scheme of arrangement which Betfair requires to see through its share of the transaction.
This timelines sets the merger ahead two month of the end of March deadline that the companies set in August. The merged company with have customers around the world and has announced plans to expand further internationally, particularly into Europe, the US and Australia.
The companies have announced that the current CEO of Betfair, Breon Corcoran, will become CEO and an executive director of Paddy Power Betfair, while Paddy Power’s current CEO, Andy McCue will become the COO and an executive director.
April 16, 2017