The acquisition of Premier Lotteries Ireland, the operator of the Irish national lottery, announced by Française des Jeux (FDJ) on Thursday is a major deal for both sides. 

From an Irish perspective, it completes the privatisation of the national lottery. An Post first auctioned off an 80 per cent interest in its gambling licence in 2014, attracting investment from the Ontario Teachers’ Pension Plan at the time. Now the Canadian pension fund, An Post and the Irish postal workers’ own retirement scheme are all selling their shares to FDJ.

The acquisition is also a big bet for the French gambling group. FDJ is the descendant of France’s state-owned national lottery operator and remains closely monitored by the French government, which retains a 20 per cent stake in the group that listed on the Paris stock exchange in 2019 and can veto its senior appointments as well as any shareholder acquiring more than 10 per cent of its shares or any multiple thereof.

FDJ is a significant gambling player in Europe. It generated €2.5 billion in revenue last year from €20.6 billion gambled by punters, nearly all in France. Its Ebitda earnings were €590 million. Not quite as large as Flutter’s £7.7 billion revenue and £1 billion Ebitda, but with a much larger profit margin and a lot less debt. Judging by half-year results announced this week, FDJ is currently on a six per cent year-on-year revenue growth trajectory – not counting its Irish deal.

The acquisition of Premier Lotteries’ €140 million in revenue at a comparable profit margin represents an expansion of more than five per cent in FDJ’s business. More significantly, it is a move outside the French group’s comfort zone. While it has a subsidiary, FDJ Gaming Solutions, established around the time of its stock market listing to target international development in recent years, this has so far remained limited to the sale of back-office services. The same applies to FDJ’s acquisitions to date, such as Sporting Group Holdings in the UK and a minority stake in a scratchcard printer in China.

Ireland is the first foreign market where FDJ is trying its hand at wholly-owned, customer-facing lottery management. Premier Lotteries could become a springboard for wider gambling development here by the French group. It is already a significant player in deregulated betting in its home market, on sports such as football – though horseracing remains a separate regulated betting monopoly in France and FDJ has no experience in that area.

The Premier Lotteries deal is just one in a growing trend among EU investors acquiring Irish businesses. In this column last week, I covered the inexorable rise of continental publishing groups on the Irish media scene. 

Since then, Tom has interviewed Frank Wilson who, with his wife Gráinne, have just sold the high-tech heating components manufacturing business they developed from scratch in west Cork to a Swedish customer. The acquisition of Ceramicx by NIBE Industrier will continue to add to the 100 jobs they have created and make millions for their family.

Also in the past week, I reported that Asterion Industrial Partners, the Spanish investment firm that took over National Broadband Ireland last year and its contract to roll-out the state-subsidised National Broadband Plan, has also become the largest shareholder in X3T, a side business started by NBI chairman David McCourt and his co-investors to sell related technologies commercially. 

In property, Rosanna revealed that not all investors were shying away from the uncertain office market, with Paris-based Corum continuing its Dublin acquisition spree through the purchase of the office block occupied by Elavon in Cherrywood for €33.4 million.

While there is no denying the supremacy of US multinationals when it comes to foreign direct investment in Ireland, the deals above reflect the growing presence of EU capital in the domestic economy. 

The national lottery, skilled manufacturing and telecommunications services, and commercial property are integral parts of this domestic economy. The investors interested in them are not just hovering around the globe looking for a base to serve international markets; they place bets on Ireland being a profitable place to do business in itself. 

In the past, many of them would have been British. In a post-Brexit Europe, they increasingly come from the continent. 

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Elsewhere this week, Sinead stirred reactions with her critique of Europe’s space industry. The end of the Ariane 5 programme with no date set for its replacement leaves this region dependent on the likes of Elon Musk’s SpaceX to launch satellites. She explained what it would take to change this situation, and why she thinks Europe is not ready for it.

Sean looked under the hood of AIB following the bank’s half-year results on Friday, especially its little-noticed reliance on interest rate payments from the Central Bank. It was an eye-opener.Stephen continued his series taking stock on the Irish economy with a look at the future of education. His analysis of economic progress as a result of education keeping ahead of technology leads him to recommend nothing less than a revolution in teaching. Don’t miss his column to find out how Ireland is placed on the starting line in this new race.