CMA approves Flutter Entertainment’s combination with The Stars Group31st March 2020 9:10 am GMT
The UK’s Competition and Markets Authority (CMA) has given unconditional phase one clearance to Flutter Entertainment’s proposed combination with The Stars Group.
The CMA had launched a merger inquiry in early February to consider whether the £10bn merger will create a “substantial lessening” of competition within the United Kingdom for goods or services.
This morning the competition watchdog unconditionally cleared the transaction following a phase one review under the Enterprise Act 2002
The Stars Group and Flutter Entertainment continue to work diligently towards completion of the combination, which remains subject to approval by Flutter shareholders at its extraordinary general meeting on 21 April and by The Stars Group shareholders on 24 April.
The deal also remains conditional on the Ontario court approval of the plan of arrangement, certain approvals from the UK’s Financial Conduct Authority, London Stock Exchange and Euronext Dublin, and any remaining relevant merger control, foreign investment and gaming related approvals, some of whom have indicated that their usual timeframes may be delayed by the current COVID-19 crisis.
“This morning's announcement from the CMA marks a further important milestone in the process towards completion of our proposed combination with The Stars Group,” said Flutter Entertainment CEO Peter Jackson. “We continue to work with the remaining international regulatory authorities to obtain the last of the outstanding approvals.
"Separately last week we published the necessary documentation ahead of the shareholder votes in April and we continue to make good progress in our post-completion planning.”
Shares in Flutter Entertainment plc (LSE:FLTR) gained 8.83 per cent to 7,220.00 pence per share in London Tuesday following the announcement, while shares in The Stars Group Inc (TSX:TSGI) closed up 3.91 per cent at CAD$25.75 in Toronto Monday.