UK to probe Flutter and Stars merger
The competition authority in the UK announced the Flutter and Stars Group merger is now under review to determine its impact in the market.
UK.- The Competition and Markets Authority (CMA) has announced an investigation on one of the biggest deals in gaming. The UK competition regulator will look into the Flutter and Stars Group merger to check its impact in the market.
The two gaming giants announced their deal early in 2019 to create the largest company in the industry. However, the €11.8 billion deal may cause “a substantial lessening of competition” which is what the CMA will assess.
The combination of the companies would create a global leader in sports betting and gaming. The Combined Group will feature a diverse portfolio of leading brands, including FanDuel and FOX Bet. They estimate that the merge will allow them to benefit from an enhanced global platform and improved local market reach. On a proforma basis, the Combined Group’s annual revenue would have been £3.8 billion in 2018. That would make it the largest online betting and gaming operator globally.
Moreover, they said that the Combined Group will have its headquarters in Dublin, Ireland. Also, a premium listing on the London Stock Exchange and a secondary listing on Euronext Dublin.
Following completion, Flutter shareholders would have in their possession approximately 54.6%, while TSG shareholders would own 45.3% of the Combined Group. This approval is likely to happen in the second quarter of 2020, while completion will happen on the second or third quarter of next year.
