(MENAFN- ProactiveInvestors)Paddy Power (LON:PAP) has announced plans to merge with rival Betfair (LON:BET) in a deal to create a gaming giant. Paddy said its shareholders would own 52% of the group while Betfair investors would have a 48% stake. Immediately before completion Paddy Power shareholders would receive a special dividend of €80mln. It represents the latest move in consolidation of the sector following on from news of Ladbrokes's (LON:LAD) planned merger with Gala Coral. Paddy and Betfair said the new group to be called Paddy Power Betfair would create one of the world's largest public online betting and gaming firms with revenues of more than £1.1bn. Paddy Power chairman Gary McGann would become chairman of the combined group and Betfair chief executive Breon Corcoran would become chief executive. Paddy's chief executive Andy McCue would become chief operating officer. The companies said talks about the terms of the deal remained ongoing and were subject to completion of due diligence.
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