US casino operator Eldorado Resorts has agreed to merge with Caesars Entertainment in a cash-and-stock deal that values its peer at about US$18 billion including debt, Reuters reports, citing people familiar with the matter.
The deal, which is expected to be announced on Monday, values Caesars at close to US$13 a share, according to the report.
The combined company’s ownership would be split roughly between Eldorado and Caesars shareholders.
The agreement comes three months after Caesars agreed to give Eldorado access to its books under pressure from billionaire investor Carl Icahn, who earlier this year was awarded seats on Caesars’ board.
The combination of the two companies would create a serious competitor to larger casino industry players, such as Las Vegas Sands, Wynn Resorts and MGM Resorts International, the report noted.
Caesars, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands.
It had 53 properties in 14 US states and five countries outside the United States at the end of December.
Eldorado owns and operates 26 properties in 12 US states.
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