Paddy Power and Betfair agree to merger

One of the world's biggest gambling businesses is set to be created after Paddy Power and Betfair agreed a possible merger.

Paddy Power and Betfair have agreed to merge. As a result of this deal, they will now become one of the biggest online gaming and gambling companies in the world.

The nature of the agreement is such that, while Paddy Power shareholders will own 52% of the new company, Betfair shareholders will own 48%.

In a joint statement, Betfair and Paddy Power explained that, “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.”

According to The Guardian, the newly-merged company will be run by current Betfair CEO Breon Corcoran. Meanwhile, Paddy Power CE Andy McCue will act as chief financial officer and company chairman Gary McCann will hold the same position in the combined firm.

The Betfair/Paddy Power announcement comes on the back of merger talks between Ladbrokes and Coral and Bwin.party and both 888 and GVC.