After making the announcement in August this year, major gambling operators Betfair and Paddy Power have reportedly began the process to merge the two companies, entering into the initial phase as set out by the Irish Competition and Consumer Protection Commission.
World’s largest gambling company
After making the announcement, officials for both companies had up until 5th November to prepare the proposal. Both Betfair and Paddy Power are two of the worlds’ most profitable and popular gambling sites and following the merger, would become one of the largest gambling companies operating at present. The combined revenue for Betfair and Paddy Power is £1.23 billion and 80% of that comes from their online gambling services.The new company will listed on the London FTSE 100 and commissioners now have the task of reviewing the plans to merge the two together.
Negotiating terms
Betfair and Paddy Power announced they had negotiated the terms of the merger last month. In them, Betfair’s assets would be acquired by Paddy Power for £2.86 billion. For shareholders, this will mean that Paddy Power’s existing shareholders will own a 52% stake, while Betfair shareholders will own the remaining 48%. The newly created company will then be known as Paddy Power Betfair.
Merger completion
The initial phase of the review of the merger is expected to take a few weeks, but should commissioners have any concerns, they could take longer to thoroughly investigate.Paddy Power shareholders will then have to approve plans first and are scheduled to vote on this in December 2015. The full completion of the merger is expected to take place within the first quarter on 2016.The newly formed Paddy Power Betfair’s headquarters will be in Dublin with Breon Corcoran (the current CEO of Betfair) taking the position of CEO. The current CEO of Paddy Power, Andy McCue, will be appointed as Chief Operating Officer.