The boards of BetFair and Paddy Power have agreed on key terms of a possible merger to create Paddy Power Befair plc. The £5 billion merger would create one of the world's biggest listed online betting and gaming companies and be the marker leader in the United Kingdom.
The two sports betting and gaming companies combined would have yearly revenues of £1.1 billion, however, they would still operate separately on the European markets. Paddy Power shareholders would own 52% of the combined group and Betfair shareholders would own 48%. Paddy Power and Betfair shares rose 18% and 17% respectively when the news broke yesterday.
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