Irish media reported that the proposed merger between gambling operators Paddy Power and Betfair has entered the first phase of the required probe that is to be carried out by the Irish Competition and Consumer Protection Commission.
As previously reported, plans for the multi-billion merger were first announced in August. Since then, officials for both gambling companies, known to be among the world’s most popular and profitable ones, have been working closely together on the submission of the proposal to the competition and consumer protection regulator. They had up until November 5 to prepare the said proposal.
Commissioners will now have to review the two gambling operators’ plan to create what would be one of the largest gambling companies providing various gambling options within the borders of the United Kingdom and the Republic of Ireland. The new company will be listed on the London FTSE 100.
The preliminary review is likely to take a few weeks. However, commissioners may need a bit more time in order to probe into the matter more thoroughly, if they have any concerns or they find any alarming issues regarding the proposed merger.
Last month, Paddy Power and Betfair announced that they had negotiated the terms and conditions of the upcoming merger. Under those terms, Paddy Power would acquire Betfair assets that have been valued at £2.86 billion ($3.2 billion). Once the transaction is completed, Paddy Power’s existing shareholders would own a 52% stake in the merged company and Betfair shareholders would hold the remaining 48%. The new entity would go under the name Paddy Power Betfair.
The merger is expected to be completed sometime in the first quartet of 2016. It needs to be approved by Paddy Power’s shareholders first. They are to vote on the proposed transaction in December.
Paddy Power Betfair’s headquarters will be located in Dublin. Breon Corcoran, currently taking the position of CEO of Betfair, will be appointed as CEO of the merged entity. Paddy Power CEO Andy McCue will take the position of a Chief Operating Officer at the combined gambling company.
Paddy Power and Betfair’s combined annual revenue amounts to €1.7 billion, with proceeds from online gambling services accounting for 80% of the overall figure.
