The acquisition of Kindred Group by FDJ (Française des Jeux) has reached an important milestone with the approval of the Autorité de la Concurrence, France’s competition regulator.
The decision came after FDJ accepted a series of commitments, including the separation of brands to ensure market competitiveness.
The acquisition process began in early 2023, when FDJ made a €2.6 billion offer to acquire control of Kindred Group, which operates the Unibet brand. Kindred’s board of directors recommended the proposal, and FDJ has since sought regulatory approvals in several jurisdictions.
In February, the Swedish Financial Supervisory Authority gave the first green light to the deal.
However, final approval by the Autorité de la Concurrence, obtained in July, was essential for the conclusion of the agreement. FDJ began this process in May when it notified ADLC of its intention to acquire Kindred.
Commitments assumed by FDJ
To ensure that the acquisition does not harm competition, FDJ agreed to adopt behavioral measures. The main one is the separation of brands.
This means that competitive offerings such as online sports betting and horse racing will be marketed under different brands than those associated with FDJ games such as lotteries and point-of-sale sports betting.
This commitment is a direct response to concerns that the merger between FDJ and Kindred could create a conglomerate with excessive power, especially in the sports betting sector. The ADLC stated that the separation of brands is essential to maintain competitiveness in the French market.
Acquisition of ZEturf and its effects
The Autorité de la Concurrence highlighted that it had already authorized the FDJ to acquire ZEturf. This is a horse racing betting operator, and approval took place in September 2023.
However, the ADLC noted that this acquisition presented competition risks. This is due to the fact that FDJ already has a monopoly over several gaming segments in France.
Furthermore, the commitments made during the purchase of ZEturf, such as the separation of monopolistic activities from competitive activities, were taken into account when evaluating the acquisition of Kindred.
ADLC believes that, without adequate measures, the integration of Kindred could generate similar conglomerate risks. This is especially due to Unibet’s presence in the sports betting and online poker market.
Conditions for approval
To mitigate these risks, FDJ committed to applying and expanding the commitments made during the acquisition of ZEturf. Furthermore, FDJ has promised to create a new brand to market its competitive games, which will not share any visual elements with its brands such as Parions Sport Point de Vente.
The Autorité de la Concurrence considered these measures sufficient to approve the transaction, after completing a detailed market analysis. The decision allows FDJ to finalize the acquisition of Kindred. Thus, ensuring that the group maintains a competitive environment and that risks to competition are minimized.
Market expectation
Although the acquisition of Kindred has already been widely discussed in the market, the operator has not yet provided an update on the progress of the deal. FDJ is in the final stage of the integration process and is expected to share more details soon when it releases its third quarter financial results.
The market is paying attention to the implications of this transaction, especially with regard to competition in the online sports betting and horse racing sector. FDJ’s commitment to maintaining a clear separation between its brands should alleviate some concerns from competitors and regulators.
