UK competition watchdog probes Evolution – NetEnt merger

Evolution had hoped to close the deal early in the next quarter.
Evolution had hoped to close the deal early in the next quarter.

The Competition and Markets Authority will look into whether the proposed merger could harm competition in the UK.

UK.- The Competition and Markets Authority (CMA) will investigate whether Evolution Gaming’s proposed acquisition of NetEnt could hamper competition in the British igaming market.

Evolution Gaming made a SEK19.6bn (€1.88bn) offer for NetEnt in June as it aims to become “the world leader in the online gaming industry”.

NetEnt’s board recommended shareholders accept the offer which would pay SEK79.93 per share – around 43 per cent over the market value at the time.

But the CMA will investigate whether the deal could cause a “substantial lessening of competition”.

It has given interested parties until October 5 to comment on the proposed acquisition. 

It will analyse responses and take a decision by November 16 on whether to take the investigation further. Evolution had hoped to close the deal by November 2.

Shares in both Evolution and NetEnt dropped slightly on the news.  

In this article:
acquisitions business UK