Betfair, Paddy Power in £6bn merger agreement

Paddy Power and Betfair merger agreed on £6bn tie up, which will create an online gambling giant that can generate  £50m a year in cost savings and will enter FSTE 100 index. It comes as Ladbrokes and Coral work on a merger and Sportingbet and GVC buys rival BWin. Party for £1bn.

The companies will still be run as separate brands after the deal under which Betfair shareholders will have a 48 per cent stake and Paddy Power investors will get 52 per cent. The new groups 80 per cent revenues will come from online operations. Gary McGann, Paddy Power chairman said:” The merger of Paddy Power and Betfair will create a company of world-class capability and people will deliver upfront synergies and create exciting business expansion”.

Gerald Corbett, the chairman of Betfair, said  “huge strategic sense by together two industry leading and successful businesses and providing enlarged scale, capability and distinctive, complimentary brands”.