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Paddy Power Betfair deal looks sure bet

Tuesday, September 08, 2015 - 01:05

Betfair and Irish rival Paddy Power have reached agreement on a 6 billion pound ($9.2 billion)combination, first set out last month. As Sonia Legg reports, it's designed to secure leadership of Britain's competitive online gambling market.

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They're gambling on being the market leader online in Britain. Betfair and Irish rival Paddy Power are joining forces in a 6 billion pound deal. Paddy Power shareholders will own 52 percent of the group - and both firms are recommending approval. It's the latest in a string of tie-ups in the sector this year as companies respond to tighter regulation and higher tax bills. Ladbrokes and Gala Coral struck an all-share deal in July, and a month later GVC Holdings agreed to buy Bwin.party Digital Entertainment. The deals are also a response to a growing mobile and tablet market - Betfair is an exclusively online business that allows gamblers to bet against each other instead of taking odds from a bookmaker. It'll receive 0.4254 new shares in the combined group in exchange for each Betfair one. While shareholders in Paddy Power - which operates almost 600 betting shops and Britain and Europe - will share an 80 million euro dividend. The new group will be called Paddy Power Betfair and will have a 16 percent share of the UK online market.

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Paddy Power Betfair deal looks sure bet

Tuesday, September 08, 2015 - 01:05