FDJ receives approval from the Competition Authority for the acquisition of Kindred
•
19 Sep 2024 •
Reading time: 2 minutes Earlier this year, Française des Jeux (FDJ) made an offer to acquire the Swedish group Kindred, famous for its online betting platform Unibet. This transaction was approved by the Competition Authority (Autorité de la concurrence) subject to conditions.
A strategic marriage
By acquiring Kindred, FDJ aims to strengthen its position on the French market and diversify its online gaming offering. Kindred, with its expertise in sports betting, online poker and its large customer base, brings complementary know-how to that of FDJ. This acquisition will allow the French group to offer a wider range of products and attract new customers.
Separate markets
The Competition Authority has authorized this transaction subject to FDJ committing to maintaining a strict separation between its monopoly activities (lottery, point-of-sale sports betting) and its competitive activities (online sports betting, online poker). This decision aims to prevent any abuse of a dominant position and to ensure fair competition on the market.
The FDJ will have to:
- Separate brands: Competitive gaming offers will be marketed under separate brands from those used for monopoly games.
- Separate databases: Customer information from monopoly games may not be used to promote competitive offers.
- Maintain separate websites: Players will have to create separate accounts to access monopoly games and competitive games.
Closing date of the takeover bid brought forward
Having received all the necessary authorisations, the FDJ has announced that it is bringing forward the closing date of its public purchase offer for Kindred to 2 October instead of 19 November.
The completion of this takeover bid announced on 22 January, at a price of 130 Swedish crowns per share, or approximately 2.5 billion euros in total, remains subject to the FDJ acquiring at least 90% of Kindred’s capital.
FDJ will make public the results of its offer as of October 3 at the close of trading. If successful, the settlement-delivery of Kindred shareholders’ shares will begin on October 11.
Upcoming challenges
The acquisition of Kindred by FDJ marks a new stage in the history of online gaming in France. This operation will transform the competitive landscape and offer new development prospects for the French group.
However, the success of this acquisition will depend on FDJ’s ability to meet the challenges. Because the integration of Kindred within the FDJ group represents a major challenge. FDJ will have to succeed in harmonizing corporate cultures, optimizing synergies between the two entities and respecting the commitments made to the competition authorities.