William Hill – Paddy Power merger in the making?
There are rumors that stockbroker Numis has claimed that bookmakers William Hill and Paddy Power should consider a merger,although other iGaming specialists are doubtful that the combination could work.
In an investment note, Numis said that a mixed operation would have annual earnings of about £600 million, and would dominate the UK and Australian online gambling market. Numis believes that this would create a much more attractive investment that wither company alone, as well as from a strategic perspective the enlarged business would be better positioned to compete in the UK and Australia specifically, while taking the best from each organisation would result in a business with outstanding technology and marketing. The stockbroker was also caught stating that a merger would help offset the negative impact of regulatory change for both companies.
The share prices of William Hill and Paddy Power rose slightly on the London Stock Exchange, while that of rival Ladbrokes dipped marginally, but the suggested merger would almost certainly face a challenge by competition authorities.