Flutter Entertainment Plc has confirmed its $11 billion merger with The Stars Group (TSG) will be completed on 5 May.

The new FTSE100 giant is the result of a six-month long process, which has involved the business securing regulatory approval in Australia, the UK and US, and shareholder approval.

A listing for the new entity is scheduled for the London Stock Exchange and Euronext’s Dublin Securities Market on Tuesday 5 May at 8am.

According to Flutter, it will be absorbing TSG assets but maintaining local autonomy of its various assets, to ensure flexibility while benefiting from the entire group’s resources.

Initially Flutter will be organised into five reporting segments:

• TSG International (PokerStars, excluding US ops)
• PPB Legacy (Paddy Power Betfair, Adjarabet, Paddy Power retail and B2B)
• Sky Betting and Gaming assets (Sky Bet)
• Sportsbet Australia
• US Unit (FanDuel Group and TSG US ops)

Next year, TSG International is set to merge with PPB international assets, to give four main operating divisions. Flutter is also set to create a new UK & Ireland division, consisting of Paddy Power and Sky Bet assets.

Reflecting on the merger Group Chief Executive, Peter Jackson, said:

“I am delighted to confirm that our transformational combination with The Stars Group will complete on 5 May. The enlarged Group brings together exceptional brands, products and businesses, a hugely talented and experienced team, and a diverse global presence. The strength of our combined portfolio of assets means that we approach the future with confidence in these uncertain times.

“Both businesses have a strong legacy of leadership when it comes to responsible gambling. As a combination, we are determined to deliver on our commitment to drive a race to the top when it comes to responsible gambling best practice across the sector.”

AYO.NEWS says:

Given the future isn’t looking so bright for sports betting operators right now, Flutter’s acquisition of The Stars Group, which has a particularly strong non-sports offering, is looking like a very opportune move! Of course, if the COVID-19 crisis drags on for months, or even a year, all bets are off for the fortunes of even the biggest gambling groups.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

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