As part of its pending takeover of Sky Betting & Gaming (SBG), the Stars Group this week filed a business acquisition report related to the buyout, as well as publishing certain pieces of financial information and some updates related to SBG. Stars Group Chief Executive Office Rafi Ashkenazi issued a lengthy press release about the acquisition following the report’s publication.
“2018 is a transformative year for the business, with three acquisitions and related financings and other significant changes to our corporate and capital structure,” Mr Ashkenazi said in the statement. “We’ve executed on these transactions and, looking forward into 2019, are now focused on integration.
“We are confident that we will deliver on our plans to grow market share both globally and in key markets. SBG is a key component of this plan, and we are excited about its potential as the fastest growing and one of the largest online and mobile sports betting and gaming businesses in the UK, the world’s largest regulated online gaming market.”
All looks good on the surface, but Ashkenazi’s statement belies the fact that the UK’s Competition and Markets Authority (CMA) has called a temporary pause to all action related to the acquisition pending a full investigation. The initial enforcement order issued in connection with this legally obliges the firms to take no further action on the planned merger until the investigation is completed.
That said, on 13th September the CMA revoked the initial enforcement order, which lifted these restrictions. The phase 1 decision from the CMA is not expected until 18th October, however; it may yet turn out that the merger will not, ultimately, happen.
