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Paddy Power Betfair merger review

The UK Competition and Markets Authority (CMA) review, which invited feedback on the proposed merger of betting companies Paddy Power and Betfair, has now closed. 

Paddy Power Betfair merger

First announced in August, the merger of the two companies would create a new holding business to be known as Paddy Power Betfair, worth more than £6 billion (€8.7 billion/$9.4 billion). Paddy Power shareholders would own 52% and Betfair shareholders would own 48% of the combined group. It will be headed up by Betfair’s current chief executive Breon Corcoran, while Paddy Power boss Andy McCue will become chief operating office. 

CMA review

 The deal between two of the UK’s biggest online gaming companies is now under scrutiny from the CMA, as it needs to ensure that it guards against a rise of monopolies and ensure the industry remains competitive. 

Paddy Power logo

Increased taxation

 Mergers have become increasingly common throughout 2015 as many companies make the decision to team up with a rival to mitigate against increased taxation by the UK gaming authority. In a statement, the CMA said: “Considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002. If so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.” 

Largest Gaming Providers

 The CMA set 20th November as the deadline for comments, and now has until the turn of the New Year to make a decision on the merger. Should the CMA approve the merger, the new company would become one of the largest online gaming providers in the world. Paddy Power logo