CMA approves Paddy Power Betfair merger
Competition and Markets Authority also begins fast-track investigation into Ladbrokes Coral deal
The proposed merger between Paddy Power and Betfair has cleared its first major regulatory hurdle after the Competition and Markets Authority (CMA) approved the deal this afternoon.
In a statement issued to the market, Betfair said it noted the approval and that the merger remained on track to complete in the first half of next year.
The deal will still need to be cleared by the Competition and Consumer Protection Commission in Ireland, with Paddy Power and Betfair shareholders set to vote on the merger on 21 December.
In a separate statement, the CMA said it had also commenced its phase one investigation into the proposed merger of Ladbrokes and Gala Coral, but will fast-track the probe.
The statutory period for the first phase of a CMA investigation is 40 days, however Ladbrokes and Gala Coral applied for the probe to be fast-tracked to phase two in a bid to shorten the process.
“It is possible to accelerate the referral of merger cases to phase two when requested by the merging parties and the CMA has sufficient evidence that the test for reference is met,” the Authority said.
The Paddy Power Betfair approval comes just weeks after it was revealed both operators would make significant cuts to their combined workforce in order to achieve half of planned £50m cost synergies.
According to a shareholder circular, £25m would be saved by reducing headcount, with the other half coming from non-payroll efficiencies in IT, property, services and marketing.