The UK’s Competition and Markets Authority (CMA) announced on Wednesday that it would be reviewing its previous decision over the acquisition of Sporting Index by Spreadex following Spreadex’s successful appeal to the Competition Appeal Tribunal (CAT). While victory is not guaranteed, this development grants Spreadex another chance to defend its investment and protect its UK prospects.
The Deal Case Could Still Swing Either Way
This newest decision is the latest development surrounding Spreadex’s acquisition of Sporting Index. The CMA first concluded in November 2024 that the merger had created a monopoly in the sports spread betting market, threatening fair competition and consumer choice. The regulator justified its stance by arguing that the deal would stifle innovation, degrade service quality, and lead to higher consumer prices due to reduced competition.
As a result, the CMA gave Spreadex a 12-week time limit to come up with a divestiture plan, warning that it would force a sale if the company failed to comply. However, Spreadex strongly opposed the ruling, calling it “entirely disproportionate.” The company claimed that a forced divestment would unfairly penalize its investment and jeopardize Sporting Index’s stability.
According to Spreadex, Sporting Index was a struggling business at the time of acquisition, and the deal would help revitalize the brand, significantly benefiting consumers and the broader market. However, the CMA was adamant, leading to Spreadex submitting a formal appeal. This strategy has seemingly paid off, giving the company another chance to state its case.
The CMA Introduced New Safeguards During the Review Period
On 4 March, the CAT ruled in favor of Spreadex, ordering the CMA to reexamine the Sporting Index merger. The CMA has since confirmed it will reopen the case, with a four-member remittal panel headed by Richard Feasey directed to preside over the reassessment. Feasey also headed the original independent panel that reviewed the deal.
We hope that in this new review, the CMA will reach a decision that best serves the interest of Sporting Index, its customers, and the wider UK economy.
Spreadex statement for Reuters
Despite the ruling, the CMA has issued an interim order to prevent Spreadex from fully integrating Sporting Index into its operations until the reassessment process is complete. The order prohibits any transfer of ownership and business-sensitive information between the two firms. It also restricts significant changes to staffing, operations, or business structure that could affect market competition.
According to the CMA’s newest ruling, Spreadex and Sporting Index must submit reports every two weeks to demonstrate their compliance with the restrictions. While this reassessment does not guarantee a win for Spreadex, the company remains optimistic that the regulator will adopt a more favorable stance during the new review process.
