Lottery giant Allwyn has pulled back on its ambitions to acquire Novibet following objections from the Hellenic Competition Commission (HCC).
Allwyn had first announced its ambitions to acquire a 51% stake in Novibet in December 2024 in a transaction valued at €217m (£188.6m). However, following feedback from the HCC, the company revealed that a decision to terminate the transaction was reached with Logflex MT Holding Limited, the owner of Novibet.
The company said: “While Allwyn and Logflex MT Holding Limited set out carefully considered proposals to the HCC, Allwyn is committed to only pursuing transactions that would deliver clear value for shareholders.
“Allwyn and Logflex MT Holding Limited, therefore, no longer expect the previously announced transaction to proceed.”
Should the acquisition have gone ahead, Allwyn would have gained access to Novibet’s market share across Europe and the Americas, given the operator’s presence in locations such as Brazil, Cyprus, Greece, Ireland and Mexico.
At the time, Allwyn stated that the move would enhance the group’s technological capabilities and strengthen its position across online sports betting and gaming markets.
However, murmurings of opposition from the HCC began in October last year, as the authority began an in-depth review of the acquisition.
Allwyn already holds a presence in Greece through its controlling share of OPAP, which operates the market-leading Pamestoixima and Stoixman brands in the country.
Objections lodged with the HCC raised concerns that the acquisition would significantly restrict competition in Greece’s online gaming market since Allwyn already holds an over 50% share in the region.
Those against the acquisition also believed that Allwyn was seeking to acquire control of the only competitor in the Greek market that has ‘proven capable of competing on equal terms’.
A plenary session was held by the HCC on 17 December to discuss the acquisition. It now appears that the commission was leaning towards agreeing with the objectors, given Allwyn’s abrupt decision to abandon the deal.
Beyond Allwyn’s acquisition of Novibet
Elsewhere, Allwyn has pursued an aggressive expansion strategy in Europe and beyond.
In January, the firm completed its majority acquisition of PrizePicks in the US, taking a 62.3% majority stake in the company, for approximately $1.6bn ($1.2bn).
The move was hailed by Allwyn’s Chief Executive Officer, Robert Chvatal, as a key milestone in the group’s bid to step up its operation in North America.
Meanwhile, the operator is also advancing a merger with OPAP to form a combined company under the Allwyn name, listed on the Athens Stock Exchange alongside a second listing on a yet-to-be-announced exchange.
