Flutter's Stars deal gets UK competition nod

(Sharecast News) - The UK competition regulator has approved Flutter Entertainment's acquisition of Canada's Stars Group after finding the combination will not lead to a worse deal for online gamblers.
Flutter, which owns Paddy Power and Betfair, agreed an all-share takeover of Stars, the owner of Sky Bet, in October to forge one of the world's biggest online betting and gaming operators with combined revenue of £1.5bn.

The Competition and Markets Authority opened a "phase 1" investigation in February to examine whether the online gamblers would be offered worse odds, promotions or products as a result of the takeover.

The CMA said it found strong competition between online betting companies and that it was easy for customers to switch between rivals such as bet365, GVC/Ladbrokes Coral and William Hill.

"While the merging companies complete closely, they are among a number of close competitors, and the merger will not worsen the offering to people who choose to bet online," the CMA said, giving unconditional clearance to the takeover.

Flutter's shares rose 10.9% to £71.68 at 08:54 BST.

Flutter said the deal required approval by its shareholders and those of Stars at meetings in April. Other smaller regulators' approval is also needed and this may be delayed by the Covid-19 crisis, the company said.

Peter Jackson, Flutter's chief executive, said: "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."

Jackson said Flutter was making good progress in planning for the combined businesses after the deal is completed.



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