Merger Between Paddy Power and Betfair Edges Ever Closer

By Maria McCoyGoogle
The merger that is said to be worth about €10 billion was initially announced in the summer of last year and when it comes off it will be one of the biggest mergers ever in the iGaming industry.

Soon to be Paddy Power Betfair

The new merger will likely return in excess of €2 billion in revenue on a yearly basis and the new operator will be known as Paddy Power Betfair. The huge multi-national gambling business will be worth an estimated €9.4 billion on the stock exchange in London when the two super powers merge into one.

This deal has already been given the green light by the Competition and Consumer Protection Commission in Ireland, with them reportedly stating that they do not feel that it will substantially lessen the competition in the industry in the country.

The merger is expected to be completed on the 2nd of February just one day after gaining the expected approval from the British High Court. The new company will see its shares open for trade the very same day in both the London and Dublin stock exchanges.

Whilst this merger has been a very long time coming it is actually set to be completed ahead of schedule. The two companies had originally agreed on setting a completion date for the end of March when they initially announced that they would be merging back in August of last year, so this date will actually be beaten by a good two months.

The Terms of the Agreement

The shareholders of Paddy Power will have a 52% stake whilst the shareholders of Betfair will have the remaining 48% and the main and secondary listings of the company will be on the London and Dublin stock markets respectively.

The newly formed company will then operate its online betting businesses across Europe, Australia, and the United States and are likely to have around 400 million customers from as many as 100 different countries. On top of that, they will have around 600 high street betting shops located across both Ireland and Britain.

Breorn Corcoran, the current Chief Executive of Betfair will be the man to head the new group whilst his opposite number at Paddy Power, Andy McCue will take up the post of Chief Operating Officer.

These are certainly exciting times for customers of either leading betting company and only time will tell if the merger will be as successful as it is widely expected to be.

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