Investigation launched into Spreadex acquisition of Sporting Index

The Competition and Markets Authority (CMA) has launched a merger inquiry into the acquisition of Sporting Index by spread betting rival Spreadex.

French gambling giant Francaise des Jeux (FDJ) sold Sporting Index to Spreadex in a deal completed in November. However, on Tuesday the CMA announced it had served an initial enforcement order under the Enterprise Act 2002 as it is considering whether a merger has been created and whether "the creation of that situation has resulted or may be expected to result in a substantial lessening of competition".

The order sets out a number of conditions that the management of Spreadex must adhere to until the determination of proceedings. They include the prohibition of actions which might lead to the integration of the two businesses, without prior written consent from the CMA.

The conditions set out that the two businesses should be carried out separately, each maintained as a going concern and that Sporting Index's "brand identity is maintained".

The order also states there should be no integration of the information technology of the two brands, customer and supplier lists of the two businesses shall be operated and updated separately and that no changes are made to key staff of the two businesses, nor should they be transferred between them.

Spreadex have been contacted for comment.

Sporting Index began trading in 1992 and went on to become the leading name in sports spread betting. They moved through a number of hands before FDJ bought Sporting Index's parent company Sporting Group in June 2019.

Sporting Group also includes sports betting technology and trading service provider Sporting Solutions and FDJ has retained ownership of that part of the business.

Spreadex were formed in 1999 by former City trader Jonathan Hufford and are based in St Albans, Hertfordshire.

A Spreadex spokesman said: "The CMA is investigating the acquisition of Sporting Index Ltd by Spreadex Ltd and Spreadex are assisting the CMA with their review."

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