Paddy Power, Betfair in Possible Merger

Betting companies Paddy Power and Betfair have agreed to terms of a possible merger, a move that would create one of the world’s largest gambling companies.

The new online gaming and betting chain would have revenues of £1.1 billion and be one of the most valuable bookmaking brands on the stock markets.

The deal is not yet guaranteed to go through, but if it proceeds the new company would be named Paddy Power Betfair, with Paddy Power shareholders owning 52% and Betfair 48%. In a statement issued to the stock exchange today, the companies said, “the possible merger would create one of the world’s largest public online betting and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands. The combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”

The announcement of the potential merger follows the news last month that Ladbrokes and Gala Coral will merge to become the biggest bookmaker in Britain. Paddy Power Betfair is expected to maintain a significant presence in Britain and Ireland while pursuing international growth opportunities, including in the U.S. and Australia.