French national lottery operator La Française des Jeux (FDJ) has made a $2.5 billion cash takeover offer for European online gambling company Kindred Group, the Swedish firm confirmed Sunday.
Kindred, which operates a stable of gambling websites across Europe, said in a statement that state-owned FDJ aims to acquire its entire outstanding share capital. The bid will be announced officially on Monday prior to stock markets opening.
The acquisition attempt comes after FDJ bought Ireland’s Premier Lotteries in November 2022 for €350 million, expanding its lottery footprint.
Meanwhile, activist hedge fund Corvex Management has pressured Kindred’s board since last year to hire a financial advisor to review strategic options including a possible sale.
The deal would substantially boost FDJ’s digital gambling operations as more European countries open regulated online betting markets. But the bid could face regulatory scrutiny and needs approval by Kindred shareholders.
With the global gambling industry rapidly consolidating, the proposed tie-up marks intensifying competition between public and private gaming giants.