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Betfair and Paddy Power merger set for February

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Paddy Power

Paddy Power: will merge with Betfair in Feburary

 By Bill Barber 4:46PM 15 JAN 2016 

THE MERGER between Betfair and Paddy Power negotiated its last regulatory hurdle on Friday with the deal set to be completed early next month.

With the UK’s Competition and Markets Authority having cleared the deal in December, shares in Paddy Power Betfair plc will be admitted to listing and trading on the London Stock Exchange and Irish Stock Exchange on February 2.

Ireland’s Competition and Consumer Protection Commission said in a statement that it had “formed the view that the proposed transaction will not substantially lessen competition in any market for goods or services in the state”.

The £5 billion-plus merger between Betfair and Paddy Power was announced in August, with shareholders of both firms giving their approval in December. Paddy Power shareholders will own 52 per cent of the new business, with the remainder held by Betfair.

Corcoran returning

Betfair chief executive Breon Corcoran will fulfil the same role in the combined group, returning to his former employer having been chief operating officer for Paddy Power.

He joined Betfair in 2012 and has overseen a remarkable turnaround in their fortunes having been instrumental in the company’s rejection of a takeover bid from private equity firm CVC in 2013.

Paddy Power chief executive Andy McCue will become chief operating officer of the merged company which will be headquartered in Dublin but expected to maintain a significant presence in the UK.

This week the CMA said it had referred the proposed merger of Ladbrokes and Coral for an in-depth phase two investigation following a request for it to be fast-tracked by the two bookmakers. A decision is due by June 24. 

 

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