Shareholders approve Eldorado’s acquisition of Caesars Entertainment

The blockbuster $17.3 billion deal by which Eldorado Resorts will take over Caesars Entertainment, thus creating the largest US IR operator, has cleared one of its main hurdles as the stockholders of both companies gave their consent on Friday.

Under the deal, Eldorado’s management team will take control of the new company, but it will continue to operate under the Caesars name. Eldorado and Caesars shareholders will hold approximately 51 percent and 49 percent, respectively, of the combined company’s shares. The combined company’s board of directors will consist of eleven members, six of whom will come from Eldorado and five of whom will come from Caesars.

The new Caesars Entertainment will own and operate about sixty US casino resorts and gaming facilities, more than any other firm.

The transaction is expected to be consummated in the first half of 2020 and remains subject to the required regulatory approvals, and other closing conditions.

Tom Reeg, chief executive officer of Eldorado, who is slated to lead the combined company, has made clear that he will focus on the domestic US market. For this reason, Caesars gave up its IR license efforts in Japan.

The future of Caesars Korea, however, remains an open question.

Caesars Korea is a joint venture project in Incheon formed through the partnership of Caesars and a leading Asian real estate developer and owner of luxury hotels and resorts. It is scheduled to open in 2021.