Lottomatica and CIRSA agree to 2.8 billion euro merger

Italian gaming group Lottomatica has reached an agreement to merge with the Spanish group CIRSA in a deal valued at approximately 2.8 billion euros (roughly 30 billion dirhams). The transaction will be executed through an absorption merger, with Lottomatica remaining as the surviving entity. This merger is expected to create the world's second-largest listed company in the sports betting and gaming sector, following Flutter.

The deal involves a share exchange where CIRSA shareholders will receive 0.668 new Lottomatica shares for every share held. Following the merger, current Lottomatica shareholders will retain approximately 67.5% of the combined group, while CIRSA shareholders will hold about 32.5%. Blackstone, the current major shareholder in CIRSA, is expected to become the largest single shareholder in the new group with a 24% stake.

The merger includes CIRSA's interests in the Moroccan market, specifically its 76% stake in Casino Tanger. CIRSA also holds interests in Agadir, including stakes in Casino Atlantic and Casino Le Mirage.

Prior to the merger, which is anticipated to be completed by the second quarter of 2027, CIRSA is expected to offer significant dividends. Estimates suggest a combined ordinary and extraordinary dividend could reach 2.16 euros per share, representing a dividend yield of over 12% for new investors.