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| Version 0 | Version 1 |
|---|---|
| Betfair and Paddy Power take a merger punt | Betfair and Paddy Power take a merger punt |
| (35 minutes later) | |
| Betfair and Paddy Power are set to merge in a deal that would create one of the world's biggest online betting and gaming companies. | Betfair and Paddy Power are set to merge in a deal that would create one of the world's biggest online betting and gaming companies. |
| Final details are still being worked out but the companies said the deal had "compelling strategic logic" and boosted their market position. | Final details are still being worked out but the companies said the deal had "compelling strategic logic" and boosted their market position. |
| Paddy Power shareholders would own 52% of the combined business, with Betfair investors owning the remaining 48%. | Paddy Power shareholders would own 52% of the combined business, with Betfair investors owning the remaining 48%. |
| The combined business would have with annual revenues of some £1.1bn. | The combined business would have with annual revenues of some £1.1bn. |
| Shares in Betfair soared 18% to £30.72 on Wednesday, while Paddy Power jumped more than 15% in Dublin. | |
| "Discussions remain ongoing regarding the other terms of the possible merger," a statement said on Wednesday. | "Discussions remain ongoing regarding the other terms of the possible merger," a statement said on Wednesday. |
| If the deal goes ahead, Breon Corcoran, boss of Betfair, would become chief executive of the combined group, while his counterpart at Paddy Power, Andy McCue, would become chief operating officer. | If the deal goes ahead, Breon Corcoran, boss of Betfair, would become chief executive of the combined group, while his counterpart at Paddy Power, Andy McCue, would become chief operating officer. |
| Industry mergers | Industry mergers |
| The combined company plans to retain the "distinctive and complementary" Betfair and Paddy Power brands in Europe. | The combined company plans to retain the "distinctive and complementary" Betfair and Paddy Power brands in Europe. |
| Gary McGann, chairman of Paddy Power, is expected to become chairman. | Gary McGann, chairman of Paddy Power, is expected to become chairman. |
| Shareholders in Paddy Power would receive a special dividend of €80m. | Shareholders in Paddy Power would receive a special dividend of €80m. |
| Based on their closing prices on Tuesday, Betfair was worth £2.4bn and Dublin-listed Paddy Power was worth €3.4bn (£2.5bn). | |
| There has been a flurry of merger activity in the gambling sector in recent months. | |
| In July online gambling firm 888 Holdings won a takeover battle for rival Bwin.party in a cash and stock deal valued at about £898m. | |
| The two companies had been in discussions since the middle of May. | The two companies had been in discussions since the middle of May. |
| Ladbrokes and Gala Coral also recently sealed an all-share merger, creating a £2.3bn betting group. | Ladbrokes and Gala Coral also recently sealed an all-share merger, creating a £2.3bn betting group. |