The Competition and Markets Authority in the UK has served an enforcement order on The Stars Group concerning the proposed $4.7bn acquisition of Sky Betting and Gaming.
The CMA says it has “reasonable grounds” for suspecting that arrangements are in place that could lead to The Stars Group ceasing to be distinct from Cyan Blue Topco, controllers of the Sky Betting and Gaming group.
Stars UK and Cyan had been ordered to remain distinct before July 10 and the CMA’s position was that the entities involved could not take any action which may prejudice a transaction.
Stars, Stars UK and Cyan must now provide the CMA with information or statements of compliance. In particular, every two weeks the CEO of the three firms must provide statements confirming compliance.
Stars and Stars UK must also keep the CMA informed of any Sky Betting and Gaming’s staff appointments or departures, interruption to business, all substantial customer volumes won or lost and substantial changes to contractual arrangements or relationships with key suppliers.
The Initial Enforcement Order made by the CMA is pursuant to section 72(2) of the Enterprise Act 2002.
