In August, Paddy Power and Betfair forged a deal to merge into one of the largest betting and gaming companies in the world, worth £5.8 billion.
Rumours Of Job Cuts
That said, The Sunday Times have reported that their people are not happy about the merger after rumors of job cuts began circulating. Paddy Power alone employs around 5,000 people, whilst Betfair has 1,900 employees. It’s thought that the merger could save £25 million in labor costs if they choose to make a number of their employees redundant.The job cuts alone could fill 50% of the £50 million planned to be saved after the deal is official. Paddy Power shareholders are set to meet on December 21 to vote on the deal but the merger may not take place until next year.
Merger Deadline March 31st
The deal is yet to receive crucial support from the Competition and Consumer Protection Commission (CCPC), though they didn’t seek information on the merger until this week. Therefore the agencies investigation, which usually takes 120 working days to complete, will be delayed until June, after the merger deadline on March 31.CCPC’s UK unit is one schedule though. The Competition and Markets Authority will release its decision on January 7.