Internet betting exchange Betfair Sportsbook and Paddy Power agreed to merge for £5B deal. The tie-up process is expected to be completed by 2016, which will secure their top spot in the global internet gambling market.

The two online betting companies, Paddy Power and Betfair confirmed their deal to tie-up for £5B making it one of the world's biggest Internet betting business. The group will be called Paddy Power Betfair. It will be headquartered in Dublin, Ireland and will also operate in the UK and Italy.

Combining the two businesses, the deal states that it would open 336 shops across the U.K. and 252 in Ireland.

"The merger of Paddy Power and Betfair will create a company of world class capability and people who will deliver substantial up-front synergies and a platform for very exciting business expansion," Gary McGann, Paddy Power chairman said in a news from Sky Sports.

According to the Independent, the proposed merger will be analyzed by competition regulators.  Lawyers from both companies will study the jurisdiction where the filing of two companies involved must be made.

The analysis will require geographic breakdown and each lawyer's assessment of local financial and market thresholds.

Shareholders are scheduled to vote on December, the merging process must be completed by 2016.

Paddy Power shareholders will obtain 52% and Betfair will have 48%. In addition, they will receive £80M special dividend. The combined revenues will mostly come from the online operation which is 80% of their annual profit.

The new group would top the U.K. market with 16% share and a value of £6B in the stock market, noted on Reuters U.K.

Breon Corcoran, Betfair chief executive will handle the Paddy Power Betfair, which will have its listing in the London and the Irish Stock Exchange.

Aside from the plan to dominate the online betting on Britain, the group targets the global market. Paddy Power Betfair also aims to extend the business across the U.S., Australia and Europe.