Betfair Paddy Power Online Gambling Merger Moves Forward

Published Saturday, January 16, 2016 -
Betfair Paddy Power Online Gambling Merger Moves Forward

The Amaya Gaming buy out of Poker Stars and Full Tilt from Irish company Rational Group was big but not as big as the recently approved Paddy Power Betfair merger.

The Irish icon shareholders will hold 52 percent of the new stock while Betfair owners will receive 48 per cent. Well positioned the new firm will have a place on the London Stock Exchange, with a secondary listing in Dublin. Ireland will be home to the enterprise that will service Europe, the USA and Australia and more than four million customers.  Clearing ghe regulatory hurdle is a major step in the formation of  a global gambling business, Paddy Power Betfair, looking at €2 billion in revenue and a combined value of €9.4 billion recently on the Dublin and London stock exchanges.

The Competition and Consumer Protection Commission approved the deal, saying it would not “substantially lessen competition in any market for goods or services in the State”. Taking on the Chief Executive Officer’s position after the completion of the paperwork for the new enterprise is Betfair’s CEO Breon Corcoran who brings a wealth of experience to the new business. Also taking on significant responsibility is Paddy Power’s CEO Andy McCue who will become chief operating officer.

Synergies and savings from infrastructure and verticals combined will put €70 million a year into the company’s coffers. Shareholders agreed to the merger whole heartedly recently after the UK’s Competition and Markets Authority approved the transaction a short time ago. Unfortunately those savings may come at the expense of employee numbers but neither firm commented.

The approvals and shareholder enthusiasm has put the deal ahead of schedule a full two months which also will result in monetary gain as every business man knows time is money. Consolidation of online gambling concerns has always been a story of growth driven by profit. The bigger the better seems to be the name of the game.

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