Italy's Lottomatica to buy Spain's CIRSA to create Blackstone-backed betting giant

The merged entity will be listed on Euronext Milan and Spanish stock exchanges.

"The transaction appears strategically compelling: Lottomatica is using its equity to acquire a lower-valued business ... while retaining 67.5% of the combined entity," JPMorgan analysts said in a note.

"Having executed exceptionally well in Italy - where it is the number one in an attractive, growing market - we see Spain as a logical next leg of growth."

Before closing, which is expected in the second quarter of 2027 and remains subject to approval by the shareholders of both companies, CIRSA will pay an extraordinary dividend of €262 million to its shareholders.

Evercore, PJT Partners, Deutsche Bank and Mediobanca were Lottomatica's financial advisers. CIRSA was advised by Lazard.