US casino operators Caesars Entertainment and Eldorado Resorts have reported that a preliminary consent order has been approved by the Federal Trade Commission, which ends the FTC’s Hart-Scott-Rodino investigation of the pending merger. Acceptance by the FTC of the consent order meets all antitrust clearances necessary for the merger.
Completion of the agreement remains subject to other closing conditions, including receipt by the Nevada Gaming Control Board, the Nevada Gaming Commission, the New Jersey Casino Control Commission, the Indiana Gaming Commission and the Indiana Horse Racing Commission, of all consents and approvals.
Tony Rodio, CEO of Caesars Entertainment 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 cash and stock deal to see Eldorado buy Caesars and create the largest casino operator in the US, offering access to around 60 domestic casino resorts and gaming facilities across 16 US states.
Lauding the increased size and regional diversification, it is estimated that approximately $500 m of synergies will be felt in the first year, affording Eldorado and Caesars shareholders respectively 51 percent and 49 percent of the outstanding shares of the merged entity.
The expanded entity, set to use Caesars’ “iconic global brand,” will consist of 11 board members – six of whom will be from Eldorado.