Regulators from Pennsylvania have given the green light to a merger between Eldorado Resorts and Caesars Entertainment.
US.- The Pennsylvania Gaming Control Board (PGCB) has approved the US$17.3 billion plan for Caesars and Eldorado Resorts to merge. The deal, which would create the largest gaming operator in the United States, is likely to be closed in the first half of 2020.
The approval from Pennsylvania joins a list of states that have already given the green light for the acquisition of Caesars Entertainment. This is the seventh OK from regulatory bodies over the last two months. They need the approval from regulatory bodies in 17 states in order to be able to merge, as well as approval from the Federal Trade Commission.
Upon completion of the transaction, the combined company will retain the Caesars name to capitalise on the value of the iconic global brand and its legacy of leadership in the global gaming industry. The new company will continue to trade on the Nasdaq Global Select Market.
The agreement includes that VICI Properties and Eldorado agreed that the former will acquire the real estate associated with Harrah’s Resort Atlantic City, Harrah’s Laughlin Hotel & Casino, and Harrah’s New Orleans Hotel & Casino for approximately US$1.8 billion.
When announcing the deal last year, Tom Reeg, Chief Executive Officer of Eldorado, said: “Eldorado’s merger with Caesars will create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies. Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming. The combined entity will serve customers in essentially every major U.S. gaming market and will marry best-of-breed practices from both entities to ensure high levels of customer satisfaction and significant shareholder returns.”