CMA to investigate Evolution Gaming’s NetEnt mega-merger
UK authority to determine whether merger meets competition law requirements ahead of £1.6bn deal
The Competition and Markets Authority (CMA) has opened an investigation into Evolution Gaming’s proposed £1.6bn takeover of NetEnt.
The watchdog will begin its inquiry into the merger to ensure it meets the requirements of section 96(2) of the Enterprise Act 2002 and whether the merger would result in a “substantial lessening of competition within any market”.
Under the section, any merger notice must be in prescribed form and must state the existence of any merger proposal to have been made public.
The CMA has invited interested parties to provide comment until 5 October to assist with its investigation.
The inquiry will close phase one on 16 November and if there is sufficient cause to move to phase two, it would result in a full investigation of the proposed deal.
The SEK19.6bn deal will result in a combination of the online gambling sector’s market-leading suppliers of slots and live casino.
The CMA has previously investigated major consolidation in the gambling industry, most notably that of Flutter Entertainment and The Stars Group earlier this year, as well as GVC and Ladbrokes Coral in 2018.