In the summer of 2020, Evolution Gaming AB made a takeover offer to software developer NetEnt. This included 20 trillion Swedish crowns. Such an offer NetEnt could not refuse. Nevertheless, the deal was not allowed to go through at that time – some regulators wanted to investigate the process, including the U.K. Competition and Markets Authority (CMA). The result of the investigation has now been announced.
CMA Approves the Takeover
The positive answer is that the CMA has agreed to the takeover.
But why was an investigation set up in the first place?
Well, Evolution Gaming Group AB develops online casino games that are presented through numerous gambling providers.
And NetEnt develops both the software and its own slots.
Thus, both companies could be considered as competitors to each other.
What usually makes a good competitor?
They are in a competitive relationship with each other.
Healthy competition ensures that prices are not determined by one company and that numerous, different products are offered.
And this is where CMA comes in: it is responsible for healthy competition.
As CMA publicly announced, they wanted to check whether a reduction in competition could take place as a result of the acquisition.
The investigation found that this was not the case and cleared the acquisition.
The Reasons for the Takeover
Many wonder why Evolution Gaming AB came up with the idea of acquiring NetEnt in the first place.
One reason lies in the American market.
Evolution would like to gain a foothold there – NetEnt already owns a few licenses for the US.
With the takeover, these will pass into Evolution’s hands.
Evolution Gaming already created live lottery games some time ago.
These craps are very popular in the USA. With this, the group also finds easier access.
And as Evolution Gaming admits, they want to become the world leader in the online casino sector.
With the takeover, this wish could come true, especially since NetEnt is also happy with this idea.
This fact also helps Evolution to implement their plans.
Among these is the expansion of online casinos.
One of the reasons is the Corona pandemic.
This clearly showed how much local gambling providers are suffering and must accept losses in revenue time and again.
This has already led to some poker rooms in Las Vegas being closed for good.
If you want to continue to be the market leader, you must react to such situations.
And this works with the exciting slots from NetEnt: Starburst and Mega Fortune come from this company.