OFT refers football pools merger to the Competition Commission
3 May 2007
The OFT has referred the anticipated acquisition by Sportech plc of the Vernons football pools business from Ladbrokes plc to the Competition Commission (CC).

The OFT has decided that the test for reference is met in relation to the supply of football pools in the UK. Sportech trades under the Littlewoods and Zetters football pools brands, and the acquisition would mean that Sportech would own the three football pools operators in the UK.

Simon Pritchard, Director of Mergers at the OFT, said: 'The merger creates a monopoly supplier of football pools in the UK. Many pools players switched to the National Lottery after its 1994 launch but remaining customers are mostly dedicated players spending almost £80 million a year. Other evidence before us clearly supported the large number of consumer concerns we received, and suggested that too few of these customers would switch to alternatives to discipline Littlewoods if it reduced value for money post-merger. Nor is entry likely to constrain the merged firm. The OFT therefore has concerns that UK football pools players will face higher prices or lower pay-out ratios after the merger. The Competition Commission will now investigate and take appropriate action.'

The CC is expected to report by 17 October 2007.

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