The Merger of Paddy Power and Betfair is Under Investigation

Before November 20, any concerned parties can submit their comments on the planned merger of Paddy Power and Betfair.

In August, Paddy Power and Betfair outlined their plans to form a new conjoint company. If the deal is realized, the combined company will be one of the largest internet gaming sites on the world. Now, the CMA is considering whether the merger of Paddy Power and Betfair would result “in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.” The body invited any interested parties to comment on the situation.

Written representations about any competition issues can be submitted until November 20. The CMA is set to decide about the merger of Paddy Power on January 7. According to UK gambling news, the new company’s 52% percent would go to Paddy Power shareholders and 48% to Betfair shareholders. ‘Paddy Power Betfair’ would be chaired by Andy McCue from Paddy Power. Betfair’s Alex Gersh would stay in his position of executive director.

EUR 1,5 billion company after the merger of Paddy Power and Betfair

The companies’ plan is to create “one of the world’s largest public online betting and gaming companies with revenues of over £1.1 billion (€1.5 billion) in their last financial years,” as put in the joint statement’s ‘Compelling Strategic Rationale’. In Europe, Paddy Power Betfair could build on “the distinctive and complementary brands of Betfair and Paddy Power.” The companies’ merger can be found under the ‘Recretion and leisure’ market sector of CMA’s page.