The creation of one of the world’s biggest online gambling companies has moved a step closer. <br /><br /> Betfair and Irish rival Paddy Power have agreed key points on a 6.87 billion euro merger.<br /><br /> Discussions are still going on around the detail and structure of the deal but the companies said on Wednesday that it’s been agreed in principle.<br /><br /> The enlarged business will have a predicted annual revenue in excess of 1.5 billion euros. <br /><br /> Shares in Paddy Power and Betfair were up 18 percent and 17 percent respectively on the news.<br /><br /> Under the terms, Paddy Power shareholders would own 52 percent of the group with Betfair investors owning the rest. Immediately prior to completion, Paddy Power shareholders would receive a special dividend of 80 million euros.<br /><br /> The two are combining at a time when increased regulation and taxation are driving companies to seek efficiencies through mergers.
