US casino operators Eldorado Resorts and Caesars Entertainment have added to the wave of green-lights issued ahead of its pending merger, after receiving a duo of approvals within the Silver State.
After being first announced in June 2019, Eldorado confirmed that the transaction has received the go-ahead from the Nevada Gaming Control Board and the Nevada Gaming Commission in connection with its pending acquisition of Caesars, subject to customary conditions.
Completion now hinges upon further approvals being received across two US jurisdictions, those being from the New Jersey Casino Control Commission, Indiana Gaming Commission and Indiana Horse Racing Commission.
This follows the Federal Trade Commission accepting a proposed consent order, which concluded the FTC’s Hart-Scott-Rodino review of the pending merger.
The FTC’s acceptance of the consent order satisfied all required antitrust clearances for the merger, one facet of which required the sale of certain properties to avoid anti-competitive situations arising in certain regions.
This saw an agreement made alongside Twin River in April, with the operator agreeing to acquire Eldorado Shreveport Resort and Casino in Louisiana and the MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155m from the Eldorado, as well as Bally’s Atlantic City Hotel and Casino for $25m from Caesars.
The $17.3bn cash and stock transaction that is to see Eldorado acquire Caesars to create the largest casino operator in the US, providing access to approximately 60 domestic casino–resorts and gaming facilities across 16 US states.
Lauding the increased scale and geographic diversification, approximately $500m of synergies are expected to be felt in the first year, affording Eldorado and Caesars shareholders approximately 51 per cent and 49 per cent of the combined company’s outstanding shares, respectively.
Set to utilise the “iconic, global brand” of Caesars, the enlarged entity will be comprised of 11 board members – six of which will join from Eldorado.