Flutter Secures CMA Clearance For Stars Group Combination

(Alliance News) - Betting firm Flutter Entertainment PLC on Tuesday noted approval of its ...

Alliance News 31 March, 2020 | 10:15AM
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(Alliance News) - Betting firm Flutter Entertainment PLC on Tuesday noted approval of its proposed merger with peer Stars Group by the UK Competition and Markets Authority.

Flutter owns Paddy Power and Betfair, and Stars owns Sky Bet.

The UK regulator said that although both companies compete strongly, the presence of other competitors like bet365 and William Hill means the merger will not worsen the offering to people who choose to bet online.

FTSE 100-listed Flutter welcomed the phase one merger clearance, but said the merger is still subject to approval by both Flutter shareholders and Stars group shareholders at general meetings scheduled for April 21 and April 24, respectively.

"This morning's announcement from the CMA marks a further important milestone in the process towards completion of our proposed combination with The Stars Group. We continue to work with the remaining international regulatory authorities to obtain the last of the outstanding approvals, said Flutter Chief Executive Peter Jackson.

"Separately last week we published the necessary documentation ahead of the shareholder votes in April and we continue to make good progress in our post-completion planning," he added.

The all-share merger announced in October 2019, will see Stars shareholders receive 0.2253 of a Flutter share per Stars share owned. Flutter's shareholders will own 55% of the combined business, and Stars Group the rest. The combined business will be worth over GBP10 billion, and will be led by Jackson.

Flutter shares were trading 9.5% higher at 7,262.00 pence each on Monday in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
William Hill PLC 116.50 GBX 2.46 -
Flutter Entertainment PLC 10,970.00 GBX 3.54 -
Flutter Entertainment PLC 122.00 EUR 2.82 -

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