Spreadex Takes Action to Contest CMA Divestiture Order

The news broke that it would be acquiring Sporting Index’s site from French lottery business Française des Jeux (FDJ) back in 2023. The Authority has ordered them to sell the business to an approved buyer that is capable of running the business in a competitive way to ensure fair competition in the industry. The sale will go through after the Competition Appeal Tribunal if Spreadex is unable to prove that they are not monopolising this part of the market.

Spreadex’s appeal on December 20th 2024 has two main grounds – one is that the CMA did not provide Spreadex access to third party evidence, but also a challenge based on the fact that an alternative buyer would not be available.

A spokesperson for Spreadex said last year: “Neither of the Alternative Bidders were credible purchasers of the B2C business and, absent the Merger, FDJ and Sporting Group would not have proceeded with either of them”.

Any buyer that wishes to take control of this part of the business needs to demonstrate the expertise and commitment to run the business as well as financial security. They will also need to meet regulatory requirements from the Financial Conduct Authority (FCA), and the Gambling Commission.

If Spreadex fails to sell within a set period of time, the CMA plans to appoint a trustee to oversee the divestiture, who will track the progress and report to the authority. They prohibit the further integration of the companies and ensure that the divestiture goes smoothly with supplier relationships remaining intact, and that assets are not transferred illegally. The main core of key staff and business information are also protected and safeguarded to ensure no sabotage can take place.