Jackpot deal: Eldorado snaps up Caesars in major casino purchase
Gambling giants Eldorado Resort and Caesars Entertainment are hoping to win big after signing an $17bn (£13.6bn) merger that is expected to create the world’s largest casino operator.
Eldorado has revealed plans today for a cash-and-stock deal to acquire Caesars, in a move that would see it run roughly 60 casino resorts and gaming facilities across 16 states.
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The new company will keep the name ‘Caesars’, which owns iconic casino venues including Caesars Palace in Las Vegas, and will continue to trade on the Nasdaq.
Shares in Caesars jumped more than 10 per cent in premarket trading after Eldorado said it would buy the firm for $12.75 a share, marking an almost 30 per cent premium on its Friday close.
Eldorado currently operates 26 casinos in 12 states, including the Tropicana in Atlantic City and its flagship resort in Nevada.
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The move comes four years after Caesars filed for Chapter 11 bankruptcy protection after being hit by an economic downturn and competition from Asian markets.
“The transaction is transformational for each company’s shareholders, employees and customers, combining Eldorado’s operational expertise with Caesars industry-leading loyalty program, regional network and Las Vegas assets,” the firms said.