Competition Authority Imposes Brand Separation for FDJ and Kindred Merger
France’s competition regulator has approved La Française des Jeux’s (FDJ) €2.45 billion acquisition of Kindred Group, under the condition that FDJ maintains a strict separation between its monopoly operations and competitive gaming activities. The decision comes after concerns that the merger could stifle competition, particularly following FDJ’s recent acquisition of ZEturf.
Regulator Imposes Brand Separation
France’s competition regulator, Autorité de la concurrence, has set strict conditions for La Française des Jeux (FDJ) following its acquisition of Kindred Group.
FDJ, the state-owned French operator, made a €2.45 billion bid for Kindred in January, positioning itself as the second largest operator in Europe’s gambling sector.
The regulator voiced concerns about potential anti-competitive effects stemming from the merger, especially considering FDJ’s previous acquisition of ZEturf in 2023. That transaction had already bolstered FDJ’s dominance in the horse racing betting sector, and the new Kindred deal risked exacerbating this influence.
Specifically, the regulator emphasized the importance of separating FDJ’s monopoly lottery operations from its competitive market activities, particularly in the online betting and poker sectors.
Commitments to Brand Independence
To address these concerns, FDJ agreed to maintain a clear separation between its monopoly games and the competitive products offered by Kindred, such as Unibet’s online betting services.
The operator will ensure that the marketing of competitive games is conducted under distinct brands that do not share logos or branding elements with FDJ’s monopoly products, like its lottery or Parions Sport Point de Vente brands.
Following FDJ’s commitments to maintain brand independence and prevent cross-selling between its monopoly and competitive market offerings, the French competition authority has granted approval for the transaction.
These safeguards aim to ensure fair competition in France’s gambling market while allowing FDJ to expand its footprint through the acquisition of Kindred Group.
