Home / Gambling / Business News / Eldorado Resorts secures $17bn merger with Caesars
Caesars Palace and other famous casinos will now be owned by Eldorado Resorts, in a deal the two companies announced on Monday. Here, Caesars Palace is seen hosting a food tasting event in Las Vegas last month

Eldorado Resorts secures $17bn merger with Caesars

U.S. casino operator Eldorado Resorts Inc has agreed to buy rival Caesars Entertainment Corp for about $8.5 billion in cash and stock. The transaction, which is set to be inclusive of Caesar’s assumed debt, is valued at around $17.3bn.

The deal will create a new market leader in the US gambling sector and will put the new company in a position to act as a major contender against large industry players such as Las Vegas Sands Corp, Wynn Resorts Ltd and MGM Resorts International.

The deal will see Eldorado acquire all outstanding shares in Caesars for a value of $12.75 per share, consisting of $8.40 per share in cash, and 0.0899 shares of Eldorado common stock, for a total consideration of around $17.3bn. Eldorado’s and Caesars’ shareholders will hold approximately 51% and 49% of the combined company’s outstanding shares, respectively.

The new business, which will operate around 60 casino resorts and gaming facilities across 16 states, will operate under the Caesars name, and continue to trade on the Nasdaq Global Select Market.

Eldorado has made a series of acquisitions over the past few years including a $1.85 billion deal for Icahn-backed Tropicana Entertainment in 2018 and a $1.7 billion deal for Isle of Capri Casinos in 2017, strengthening its free cash flow and earnings per share. The company’s stock has risen more than 10 times since it went public in 2014.

Earlier this year, billionaire Carl Icahn revealed an enormous stake in Caesars and pushed for fundamental changes at the company. Caesars, which operates 34 casinos in the U.S., emerged from bankruptcy protection in late 2017, but it’s been struggling since. The company’s long-term debt stood at $8.79 billion as of March 31.

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