Competition watchdog invites comments on Paddy Power deal

The UK Competition and Markets Authority (CMA) on Monday invited "interested parties" to comment on the proposed merger of Irish bookmaker Paddy Power with UK rival Betfair.

The competition authority is currently investigating whether or not the merger of the two companies, which would create one of the world’s biggest gambling groups, with annual revenues between € 1.5 and € 2 billion and a stock market value of about € 8 billion, would result in a “substantial lessening of competition” in the UK.

As such, it has invited comments on the proposed deal, with details available here.

First announced in August, under the proposed deal’s terms, Paddy Power shareholders will get 52 per cent of the enlarged entity and will receive a special dividend totalling € 80 million before any deal goes ahead. Betfair’s owners will receive 48 per cent of the new company.