France Outlines Conditions for FDJ’s Acquisition of Kindred

The French competition regulator has approved the deal as long as FDJ agrees to follow certain conditions.

FDJ to Keep Its Monopoly and Competitive Businesses Separate

France seems favorable of FDJ’s takeover of Kindred, provided that the two companies agree to follow a number of conditions. In the wake of its first investigation into the matter, the French competition regulator said that the deal must ensure that FDJ and Kindred are kept as separate brands.

The authority pointed out that the merger would come too soon after the French operator’s acquisition of ZEturf, therefore sparking competition-related concerns. As a lottery monopoly in France, FDJ already has a significant presence in the French market.

If the deal proceeds, it would create the second-largest operator in Europe. The French competition regulator therefore believes that Kindred could become engrained in FDJ, allowing the latter company to channel players toward the Kindred family brands, mixing its monopoly business in France with Kindred’s competitive gaming business.

To mitigate conglomerate-related risks, FDJ was asked to keep the Kindred brands separate from its main business. As a result, the French operator was asked to maintain its brands and logos separate from those of Kindred Group and avoid the temptation to intermingle the two.

As a result, Kindred Group’s competitive games will not share a common logo with FDJ or Parions Sport Point de Vente.

FDJ, which had previously promised to keep its business more or less unchanged following the merger, agreed to make a separation commitment and market competitive games under brands that do not share a common root with its monopoly business.

The Deal Would Create One of the Strongest European Operators

Earlier this year, FDJ had refuted concerns related to its acquisition of Kindred, expressing confidence that the deal would be approved. Back then, chief financial officer Pascal Chaffard had also noted that FDJ would differentiate its business from Kindred’s, promising that they would use separate customer wallets and cater to different types of players.

For context, FDJ’s acquisition of Kindred was announced in January. The French lottery monopoly proposed €2.45 billion for the merger, which would create one of the strongest operators in Europe.

Kindred asked its investors to approve the transaction, promising that it would generate significant shareholder value.

The deal was quickly greenlit by the Swedish regulators but was more closely examined in France amid competition-related concerns, exacerbated by FDJ’s aforementioned acquisition of ZEturf.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}