A historic merger worth $17.3 billion between Eldorado Resort and Caesars Entertainment is gradually coming to fruition. The merger, which will create the most prominent casino operator in America, has gotten stakeholder approval, as is stated in igamingbusiness.
The meeting between stakeholders was held in Las Vegas and Reno, where the majority of the members voted to proceed with the intended merger. The merger will become official within the first six months of 2020. However, currently, it is subject to approval by regulatory bodies.
During a joint press briefing, the two firms announced that a large number of stakeholders from both sides had voted to have them become one — about 87 percent from Eldorado’s camp and close to 76 percent from Caesar’s side.
Caesar’s future was under severe scrutiny until June of 2019, when Eldorado proposed to purchase the majority of its shares. The new conglomerate is expected to manage close to 60 properties spread across the U.S. its headquarters will be located in Reno. Tom Reeg, the boss of Eldorado, will be in charge of the new firm.
The road to this merger has been long and winding. It was only last fall when news of the alliance came to the public domain. This was one year after the firm emerged out of bankruptcy. At the beginning of 2019, Activist and millionaire Carl Icahn became majority shareholder.
He is the person who actively encouraged the merger.
Talks between Caesar and Eldorado started way past spring, but there were a few other bids from firms like Golden Nugget, although the owner, Tilman Fertitta, was ready to make a new offer for Caesar.
The arrangement between the two firms will close before June 2020. A few things are yet to be done before the deal is finalized. Some properties will have to be offloaded. The joint venture may be forced to sell off most of the properties located in the city of Atlanta, where both companies have four venues.
Tony Rodio, chief executive officer at Caesar, stated that he believes that this merger is going to build on the achievements as well as the best-in-class practices of both firms. He also went on to state that the firm is excited to incorporate Caesar’s rewards into the overall portfolio.
This means that both companies will be in charge of almost half of the properties in Atlanta, which sum up to nine in number. Very few mergers happen this smoothly, and certainly very, few receive the kind of support the stakeholders provided through their votes.
In many other instances, especially where a casino is to be put up in the neighbourhood, the residents and the authorities in that area are often the first to issue an objection. Nevertheless, in this case, the local mayor is entirely on board, and no one has gone to court asking the project not to go on. Nothing is likely to come in the way of this project getting approval, but its wait and see kind of thing.