Caesars and Eldorado Close To Finalizing Merger As Stockholders Approve The Historic Move

The historic $17.3 billion merger of Caesars Entertainment and Eldorado Resorts is drawing nearer. The move that will create the largest casino operator in the USA got the of shareholders. The Special Meetings of Stockholders took place in Reno and Las Vegas and the majority voted in favor of the deal.

The merger should be made official in the first half of 2020. It is now a subject to regulatory approvals.

Done Deal

The two companies have announced, in a t statement…

…that majority of two entities’ stockholders voted in favor of the merger – about 87% of Eldorado’s and 76% of Caesars’.

The future of Caesars Entertainment was under a lot of speculation until June this year, when it was agreed that Eldorado Resort will purchase it. This conglomerate will run 60 properties across the entire USA, and its headquarters will be at Reno, Nevada.

Eldorado’s boss, Tom Reeg, will be the CEO of the newly formed company.

The Long Process

It was last fall when reports of Caesars’ sale first emerged…

…which was one year after the company emerged after a bankruptcy procedure, and early this year Carl Icahn, millionaire and activist became company’s largest shareholders and actively pushed for the sale of the company.

The talks between Eldorado and Caesars began past spring, although there were other bids from the likes of Golden Nugget, even though its owner, Tilman Fertitta, was prepared to make another offer for the purchase of Caesars.

The deal between Eldorado and Caesars should be closed before June 2020.

Properties to be Sold

So, what remains to be done. There are those who thing, that in order for the deal to be finalized…

…there will have to be some offloading of properties. The combines company could be forced to sell properties in Atlantic City, where they both have four venues. That would mean that they would control almost half of all Atlantic City properties, of which there are nine in total.

Caesars sold Rio All-Suites Hodel and Casino in Vegas last month, while Eldorado sold two properties in Missouri and Mississippi.

Source:

“Stockholders of Eldorado Resorts and Caesars Entertainment Vote to Approve Eldorado’s Acquisition of Caesars”, businesswire.com, November 15, 2019.