- Legal States
Stoyan Todorov April 30, 2020 3 min read
Flutter Entertainment and The Stars Group Set Merger Date for May 5
Paddy Power Betfair parent company Flutter Entertainment is drawing closer to the long-anticipated merger with The Stars Group (TSG). After shareholders from both companies have approved the move and regulators have given their go-ahead, the merger will be completed on Tuesday, May 5.
This will conclude the process that began back in October 2019, when the companies first announced their intentions to pool their efforts and create a new gambling and betting giant with a global footprint and expected revenue of $4.7 billion a year.
Flutter Entertainment’s stake holders gave a near-unanimous approval for the move with 99.2% voting in favor of the deal last week. The Stars Group shareholders seemed to approve of the deal in equal measure and pushed ahead to vote with an overwhelming 99.99% margin.
Regulatory Hurdles Finally Ironed Out
The companies have assured that the companies have finally secured all the approvals they need to proceed, including one from the Competition and Markets Authority (CMA) in the United Kingdom in March and the Australian Competition and Consumer Commission (ACCC) clearing the merger back in February, among others.
Peter Jackson, Flutter Group chief executive had this to say commenting on the imminent move:
“I am delighted to confirm that our transformational combination with The Stars Group will complete on 5 May; the enlarged group brings together exceptional brands, products and businesses, a hugely talented and experienced team, and a diverse global presence.”
Jackson drew attention to the fact that the merger would create a new entity that is more resilient to what he described as “uncertain times,” alluding to geopolitical and regulatory challenges that lie ahead of operators.
He didn’t miss to note that while the move would be good for business, both companies had a long and well-established responsible gambling commitment and measures to help safeguard players.
Federal Government within the Company
Flutter Entertainment will not try to weigh down the structure and management of the company by seeking to micro-manage every aspect of operations. Instead, regional arms will be formed to allow businesses familiar with each respective market to operate freely.
Strategy, from one region to the next, will change and vary, Flutter confirmed. The company will start with five operating entities that will spearhead their own products, including:
- Sky betting and gaming
- TSG International
- Paddy Power Betfair
- Sportsbet and BetEasy
- FanDuel Group/FoxBet
There will be some overlap and every segment will be streamlined overtime. Flutter is planning to delegate its management to four divisions and operating structures later on. Any changes resulting on a management and operating level will be done with the sole purpose of giving the company enough flexibility and an opportunity to keep its momentum in each of the markets it operates in.
Commenting on the latest developments, TSG executive chairman Dave Gadhia had this to say: “With the overwhelming approval of our shareholders last week and receipt of all remaining regulatory approvals, we look forward to completing our combination with Flutter next week.”
Gadhia didn’t hide his excitement citing the approval of shareholders as another sure-fire sign that TSG/Flutter Entertainment are moving to create a new global leader in the online gambling space, achieve better and streamlined revenue sources, and innovate on a technological level.