Italy’s Lottomatica agreed to acquire Spanish rival CIRSA in an all-share deal valued at €2.8 billion. This merger creates the world’s second-largest listed gaming and betting company.

Blackstone will emerge as the largest single investor in the combined entity. The new group projects a pro-forma adjusted core profit of approximately €2 billion.

The company will list on both the Euronext Milan and Spanish stock exchanges. Lottomatica shares fell after the announcement, while CIRSA shares surged.