CMA kicks off Flutter/Stars Group merger review
UK authority to examine whether multi-billion merger breaches competition law
The Competitions and Markets Authority (CMA) has initiated its investigation into the multi-billion-pound merger between Flutter Entertainment and The Stars Group.
Investigators from the CMA will assess whether the merger between the two will enable a “substantial lessening” of competition within the UK gambling market.
As part of the enquiry process, the CMA has said it is seeking to obtain comments on the transaction from any interested party.
The enquiry – launched on Tuesday – will close to external comment on 18 February, with a statutory deadline of 31 March for the first phase of the investigation.
Under CMA procedures, a phase one investigation can be launched if the authority has a ‘reasonable belief, objectively justified by relevant facts’ that any merger will lessen competition substantially.
If the CMA finds that there is sufficient cause to proceed to phase two, it will result in a full investigation of the deal, which was first announced in October.
The CMA has investigated mergers between online gambling firms before, most notably in 2018 following GVC’s acquisition of Ladbrokes Coral.
That investigation did not proceed to phase two.