One of the world’s biggest gambling businesses is set to be created after Paddy Power and Betfair agreed a possible merger.
The new online gaming and betting chain would have revenues of £1.1 billion (1.5 billion euro) and it would be one of the most valuable bookmaking brands on the stock markets.
Both companies cautioned there was no guarantee the deal would go through but they expect to make a further announcement in coming weeks.
The boards have agreed in principle to rebrand the merged businesses as Paddy Power Betfair, with Paddy Power shareholders owning 52% and Betfair 48%.
In a statement issued to the stock exchange they said: “The possible merger would create one of the world’s largest public online betting and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands.
“The combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”