Tuesday 8 September 2015 1:13 pm

Behold, Betty Power: Paddy Power and Betfair reach agreement on all-share merger

The boards of Paddy Power and Betfair have reached an agreement on the terms of a recommended all-share merger to create a new entity called Paddy Power Betfair – or "Betty Power" to its friends…

Having agreed a deal in principle to create one of the world’s largest online gambling companies by revenue, the pair announced today that Paddy Power shareholders will end up with 52 per cent of the new company, with Betfair shareholders owning 48 per cent.

Read more: Paddy Power and Betfair take a punt on a merger

Paddy Power shareholders will also receive a special dividend of €80m (£58m) immediately prior to completion.

Betfair’s chief executive Breon Corcoran will become chief executive of the new company, while Gary McGann, Paddy Power’s chairman, will become chairman of Paddy Power Betfair.

McGann said:

The combination of Breon, Andy and their colleagues in this merger of equals comprises "the A team" in the business with the ambition to create a unique global player in a very dynamic industry

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This is the latest deal in a series of consolidations in the gambling industry after being hit be increased taxes on betting activities in the UK, including Ladbrokes and Gala Coral announcing a tie-up and GVC Holdings reaching a deal with Bwin.party.