FDJ Secures Regulatory Approvals for Kindred Takeover, Sets Closing Date to October 2

La Française des Jeux (FDJ) is proceeding with its acquisition of Kindred Group. Having cleared all regulatory approvals, the former company provided a closing date for the deal. The French operator, however, must still secure additional approvals from Kindred’s investors.

FDJ Will Close the Deal on October 2

The French group said that it has obtained final approval from the French Competition Authority, allowing it to proceed with the historic merger.

FDJ further noted that the definitive clearance by the aforementioned authority was the final regulatory condition for the completion of the transaction. With a regulatory green light over its head, the group confirmed that it has decided to move the closing date closer.

Initially, FDJ planned to close the deal on November 19, 2024. However, the group has now decided to move the expiry of the acceptance period for its offer to October 2, 2024. 

FDJ Must Secure Approval from Kindred’s Shareholders

While the deal has been greenlit by the relevant regulatory bodies, FDJ has yet to secure approvals from Kindred’s shareholders. In order for the deal to proceed, the owners of at least 90% of Kindred’s shares must agree with the arrangement.

As of the time of this writing, five major shareholders, namely Corvex Management, Premier Investissement, Eminence Capital, Nordea and Veralda, have given the go-ahead to the two companies. The five entities collectively own 26.72% of Kindred’s outstanding Swedish depository receipts (SDRs) and have made an irrevocable commitment to support the M&A agreement.

FDJ, meanwhile, owns 1.11% of Kindred’s outstanding SDRs.

FDJ said that it would announce the result of the offer on or around October 3, 2024, at the close of the market. The French operator added that if the deal is completed, the official settlement should come at around October 11.

FDJ and Kindred Would Form Europe’s Second-Largest Operator

FDJ proposed its takeover in January this year, setting out to join forces with Kindred and create Europe’s second-largest operator.

Some were concerned about the deal because of FDJ’s recent acquisition of the ZEturf Group. Despite that, FDJ was convinced that the French Competition Authority would approve the transaction.

The French Competition Authority gave the go-ahead to FDJ two days ago after carefully evaluating the matter. However, the regulator asked FDJ to keep its French lottery monopoly business separate from that of Kindred Group’s brands – a condition FDJ agreed to.