Betfair e Paddy Power are ready to unite to create a betting giant. In fact, the two operators have reached an agreement in principle for a 5 billion pound (about 6,8 billion euro) card-to-card merger, which will give life to the lworld leader in betting, with revenues of $1,1 billion.
The shares of both companies benefited from the announcement of the merger, recording double-digit increases on their respective stock exchanges.
According to the terms of the agreement, the shareholders of the Irish Paddy Power will hold 52% of the capital of the group that will arise from the merger and those of the British Betfair the rest. An extraordinary dividend is envisaged for Paddy Power shareholders of 80 million euros.
The market share of the new group, which will be chaired by the chairman of Paddy Power Gary McGann, will be 16%.
