The Stars Group has completed its $4.7 billion acquisition of Sky Betting & Gaming creating the largest publicly listed online gaming company in the world.
The deal immediately drew the attention of the UK Competition and Markets Authority which announced an investigation into the completed deal. The authority did not, however, say what prompted the investigation.
“This acquisition represents a pivotal moment in The Stars Group’s evolution,” Rafi Ashkenazi, The Stars Group’s chief executive officer said in a press statement. “SBG’s mobile-focused sportsbook pairs well with our industry-leading poker offering to create two premier customer acquisition channels. We believe this combination along with our combined online casino offerings positions The Stars Group for continued growth in the evolving online gaming industry.”
The group said the acquisition allows The Stars Group to diverse its revenue across poker, casino and sportsbook across the world and also increases The Stars Group’s presence in regulated or taxed markets to about 75 percent of its revenue.
SBG was purchased through a combination of cash and 37.9 million newly-issued common shares of The Stars Group, according to local reports.
As for the investigation, while the authority did not comment on what prompted it, the body did make reference to UK law concerning mergers resulting in “a substantial lessening of competition” in the marketplace, according to CalvinAyre.com.
The CMA has instructed the companies to not begin integration of Sky Betting businesses into the groups business or to transfer ownership or control of either company’s business. The companies also cannot take steps that impair the ability of either company to compete independently in any of the markets in which they both operate, the report said.
Further, the companies have also been instructed to keep their customer and supplier lists separate, not to make any key staff changes or transfers, and not to share any “business secrets, know-how, commercially-sensitive information, intellectual property or any other information of a confidential or proprietary nature relating to either of the two businesses.”
Stars Group has not commented on the investigation.
