The casino operators revealed that they are in talks over a possible merger that would involve cash and stock.
US.- Penn National Gaming revealed that it is currently in talks to acquire rival regional casino operator Pinnacle Entertainment. As the company said, the transaction would involve both cash and stock.
“In light of recent market speculation, Penn National Gaming today confirmed that it is engaged in discussions with Pinnacle Entertainment regarding a potential business combination, whereby Penn National would acquire Pinnacle in a cash and stock transaction,.” said Penn National, and added that the discussions being carried away don’t mean that a transaction would take place. Moreover, it also said that the merger won’t be further discussed until a deal is announced.
Pinnacle owns 16 casinos, mainly in the Midwest and South, and would increase its offering by teaming up with Penn National, which is present in 29 states like Nevada, New Jersey, Massachussets and California. A merger would certainly help the companies compete with bigger gambling operators like MGM and Caesars, both of them trying to expand their operations in regional markets across the United States.