FTSE100 Giant Created As Flutter Merge With TSG

A new gambling giant on FTSE100 was created this Thursday morning as Flutter Entertainment Plc announced its $11 billion merger with The Stars Group Inc (TSG) to be completed.

During the first half of 2020 trading, Flutter concluded its six-month merger pursuit of TSG  was on time, securing both regulatory (Australia, UK and US) and shareholder approvals.

Updating its timetable, a listing on the London Stock Exchange and Dublin Share Market (secondary listing) was approved by the Flutter-TSG combination for Tuesday 5 May (8 am).

Flutter must implement a new ‘organisational design’ to absorb TSG properties, ensuring that its localised portfolio retains ‘autonomy to respond to changes,’ while benefiting from the wider resources of the enlarged community.

For the time being, an expanded Flutter will be broken down into five reporting segments to ensure the news listing:

  • TSG International – PokerStars excluding US operations
  • PPB Legacy  (Paddy Power Betfair, Adjarabet, Paddy Power retail and B2B)
  • Sky Betting and Gaming assets (Sky Bet)
  • Sportsbet Australia
  • US Unit – FanDuel Group and TSG US operations

Post-2020, Flutter will form four core operating divisions, under which TSG International will combine with PPB’s ‘international’ assets.

Further organisational changes will see a new UK & IRE division created by Flutter merging Paddy Power assets with Sky Bet.

Group chief executive Peter Jackson commented: “I am delighted to confirm that our transformational combination with The Stars Group will complete on 5 May. The enlarged Group brings together exceptional brands, products and businesses, a hugely talented and experienced team, and a diverse global presence. The strength of our combined portfolio of assets means that we approach the future with confidence in these uncertain times.

“Both businesses have a strong legacy of leadership when it comes to responsible gambling. As a combination, we are determined to deliver on our commitment to drive a race to the top when it comes to responsible gambling best practice across the sector.

“As we approach a new era for the enlarged Flutter organisation, I wish to take this opportunity to acknowledge the huge contribution of Rafi Ashkenazi in creating the exceptional business that The Stars Group is today. He has been instrumental in transforming TSG from a single product operator to a diverse global leader with multiple product offerings. I know that his experience and expertise will bring valuable perspective to our Board as we bring our two businesses together.”