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Betfair and PokerStars merge and create the largest betting company in the world

Betfair and PokerStars merge and create the largest betting company in the world

Flutter Entertainment has reached an agreement to acquire Stars Group, creating the world's largest betting company in revenue.

Flutter Entertainment, which owns the gaming brands Paddy Power, Betfair and FanDuel, among others, has reached an agreement to acquire Stars Group, which will create a new company. The merger will generate 3.8 billion Euros (US $ 4.66 million) in revenue for 2018, pro forma.

Flutter will own 54.64% of the new company, with the Star Group, owner of Sky Betting and Gaming, PokerStars and more, with a 45.36% stake.

In addition, it is possible that the agreement will be closely examined by regulators, as the company resulting from the merger, with a value of £ 11 billion, would maintain a significant share in several markets, including the United Kingdom and the United States.

The agreement will create the world's largest gambling and betting company in revenue, seeking to capitalize on the opening of US markets.

The current CEO of Flutter, Peter Jackson, will also be the CEO of the new organization, along with the CEO of Stars Group, Rafi Ashkenazi, in which he becomes COO.

Meanwhile, the company will keep the name of Flutter Entertainment and expect synergies of pre-tax costs of €140 million per year, until the end of the third year, after the merger. In addition, as part of the agreement, Fox Bet (part of the Stars Group) will be entitled to acquire 18.5% of FanDuel, while Fastball and Boyd Gaming will also receive 12.5% ​​of this increase in Fox Bet's market value, under certain conditions.

The group resulting from the merger of Paddy Power, Betfair, Adjarabet, SportsBet, FanDuel, TVG, SkyBet, Sky Vegas, Bet Easy, Fox Bet, Fox Sports Super 6 and Poker Stars will be based in Dublin and will have shares in London.

On the day of its start, early in the morning, the price of Flutter shares increased by approximately 18%, to 89.90 million Euros.

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