Spreadex-Sporting Index deal faces lengthy review by UK regulator

(Reuters) - Britain's competition watchdog referred Spreadex's completed acquisition of sports-betting rival Sporting Index's consumer-facing arm to an in-depth investigation on Wednesday.

The Competition and Markets Authority (CMA) said the decision to kick off a Phase 2 probe comes after Spreadex said it will not be submitting any undertakings for the concerns that the regulator had raised around the deal earlier this month.

WHY IT'S IMPORTANT

The CMA said its Phase 1 probe found the deal may have created a monopoly by removing the only other licensed UK sports spread-betting services provider.

The regulator had given the companies five working days from April 4 to respond with meaningful solutions.

CONTEXT

Regulators on both sides of the Atlantic are stepping up scrutiny of rival acquisitions, especially those with access to big volumes of user data, and typically demand remedies before approving such deals.

Spreadex bought Sporting Index's unit from French gambling giant Francaise des Jeux last year and the details of the acquisition were not disclosed.

THE RESPONSE

In an emailed statement, Spreadex said it would continue to assist and co-operate with the CMA's ongoing review, while Sporting Index did not immediately respond to a Reuters request for comment.

(Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath)