FTC Clears The Way For Eldorado and Caesars Merger

FTC Clears The Way For Eldorado and Caesars Merger

The Federal Trade Commission (FTC) recently greenlighted a proposed merger between casino giants Eldorado Resorts and Caesars Entertainment. With this decision, the Hart-Scott-Rodino review of the pending merger at the regulator comes to an end.

FTC accepts consent order

Caesars Entertainment and Eldorado resorts are two of the biggest casino companies in the US. The proposed merger will bring Caesars under the control of Eldorado. However, it has to go through a long process of regulatory approvals before being finalized. This includes approvals on the federal as well as state levels. In its investigation, the FTC found that the merger satisfies all the requirements for antitrust clearances and passed the proposal.

FTC Clears The Way For Eldorado and Caesars Merger

However, the transaction is still far from complete. The two companies have to get the approvals of several state regulators including the Indiana Horse Racing Commission, the Indiana Gaming Commission, New Jersey Casino Control Commission, Nevada Gaming Commission, and Nevada Gaming Control Board.

Caesars hopeful for the deal

Caesars Entertainment CEO Tony Rodeo commented on the consent and said,

“We are pleased that the FTC’s approval of our planned merger with Eldorado paves the way for securing the remaining consents and approvals from regulators in Indiana, Nevada, and New Jersey. All of us at Caesars are committed to completing the merger, which is expected to create the largest US gaming company.”

The $17.3 billion deal will be a stock and cash transaction in which Eldorado will acquire Caesars and create the largest casino chain in the US. The new entity will own about 60 domestic casino-resorts and other gaming facilities in 16 states in the US.

The deal would be bringing synergies worth $500 million in the first year itself. Eldorado shareholders will hold 51% of the merged entity while Caesars shareholders will retrieve 49% of all outstanding shares. The new entity will now have 11 board members, of which 6 will be from Eldorado while 5 will be from Caesars.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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