Flutter Entertainment hails “important milestone” of CMA approval in Stars Group merger
UK competitions watchdog grants unconditional approval of multi-billion-pound mega merger
Flutter Entertainment’s multi-billion-pound merger with The Stars Group (TSG) moved one step closer today after the UK’s Competition and Markets Authority (CMA) granted its unconditional approval of the deal.
The merger received unconditional phase one clearance from the CMA, following an investigation which began in February.
In its investigation, the CMA found the competition which exists in the gambling sector would not result in customers receiving less generous promotions or less favourable odds due to the merger of the two businesses.
“The CMA therefore found that, while the merging companies compete closely, they are among a number of close competitors, and the merger will not worsen the offering to people who choose to bet online,” said the authority.
Flutter and TSG have provisionally set a completion date of 31 October 2020 for the formal completion of the £10bn merger.
The merger will now pass for shareholder approval at the operators’ respective AGMs, with Flutter Entertainment’s scheduled to take place in Dublin on 21 April.
In addition, approvals are still required from court authorities in TSG’s native Ontario, from the UK Financial Conduct Authority, London Stock Exchange and Euronext Dublin.
In the wake of the announcement, Flutter Entertainment’s share price rose by 8.77% in early trading.
Flutter Entertainment CEO Peter Jackson welcomed the news, calling it an “important milestone” in realising one of the largest mergers in the history of the sector.
Last week, the two operators revealed that current Stars Group CEO Rafi Ashkenazi would not become the COO of the combined brands, instead moving to a consultancy role advising the firm on strategy and integration of the TSG business.
Flutter has also suspended its annual dividend payment for 2020 in light of the Covid-19 pandemic.