Eldorado Resorts is a step closer to completing Caesars Entertainment Corporation’s $17.3bn (£ 13.3bn/€15.6bn) takeover after gaining regulatory approval in Missouri.The state’s gaming commission gave the deal its green light, announced in June and expected to finish in the first half of 2020.
In an update issued today (Thursday, December 5) Eldorado said the transaction–which would see Eldorado buy all of Caesars ‘ outstanding shares–remains subject to all necessary regulatory approvals and other closing conditions being obtained. Eldorado and Caesars will have to seek authorization from all states in which the combined company operates from regulatory bodies. This will also need the Federal Trade Commission’s authorization.
Eldorado operates five Missouri casinos, but is selling three of them, including Kansas City’s Isle of Capri.
Last month, Eldorado and Caesars investors voted separately to approve some acts related to the proposed merger, with more than 99% of all votes cast in favor of the deal.
If the deal goes through as planned, about 60 casino resorts and gaming facilities across 16 states will run the new company. It will be located in Arizona, California, Colorado, Florida, Illinois, Indiana, Iowa, Nevada, New Jersey, Ohio, Kentucky, Maryland, Mississippi, Missouri, North Carolina and Pennsylvania.
The new company will compete on the Nasdaq Global Select Market under the name of Caesars and continue to trade.
Eldorado said it aims to produce synergies of around $500 m in the first year after completion of the contract. Eldorado investors will retain 51% of the outstanding shares of the merged company.
“The merger of Eldorado and Caesars would create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that provides immediate and long-term value to both business shareholders,” said Eldorado CEO Tom Reeg at the time of the original announcement.
Caesars CEO Tony Rodio added:
“We believe that this combination will build on both companies ‘ achievements and best-in-class operating practices. We are ready to use the combined portfolio to incorporate Caesars Rewards.