The UK’s competition watchdog has given the green light to the Paddy Power–Betfair merger, while Ladbrokes and Gala Coral Group are getting antsy about their own engagement.
On Thursday, the UK Competition and Markets Authority (CMA) announced that it had given Phase 1 approval to the union of Irish betting operator Paddy Power and UK online betting exchange Betfair. The companies say the way is now clear for their merger to be completed in Q1 2016.
In September, the companies announced they’d reached terms on a deal and the CMA’s investigation began last month. The CMA wasn’t expected to render its verdict until the first week of January but it apparently found both companies on their Christmas ‘nice’ list and decided to spread the good cheer in time for the holidays.
The proposed merger of UK bookmakers Ladbrokes and Gala Coral was announced in July yet the CMA only officially commenced its inquiry on Thursday. The normal 40 working day timeline for completion of the Phase 1 investigation would mean a verdict wouldn’t be forthcoming until Feb. 15.
With Euro 2016 looming large on the calendar and those anticipated millions in merger synergies just waiting to be, er, synerged, Ladbrokes and Gala Coral have requested that the CMA conduct a ‘fast-track’ investigation, which would reduce that 40 working day window to 15 working days. The CMA hasn’t yet ruled on the request and has invited interested parties to comment.
The Ladbrokes-Coral merger was always going to be a tougher sell due to the companies’ extensive retail operations. The CMA is expected to instruct the companies to sell off several hundred of their combined 4k betting shops and other companies have already expressed interest in bolstering their own real estate holdings from the Lads-Coral fire sale.
