Penn National Gaming has announced that is has entered discussion with rival casino owner, Pinnacle Entertainment over a possible purchase, with the aim to create a unified company with 45 properties in more than a dozen states and Canada.
In statements, both companies said they were not certain that the discussions would necessarily lead to a transaction. However, according to people familiar with the matter, both companies are said they could possibly reach an agreement in the next few weeks.
“These discussions may or may not lead to any transaction, and the company does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required,” Penn National said in a statement.
The company expressed that the discussions revolve around purchasing Pinnacle in a cash and stock transaction.
The Wall Street Journal recently reported that the two companies were in talks for a potential merger. A merger would result in a combined company with more than $5 billion in revenue, with Penn National owning 29 properties, and Pinnacle 16.
Both companies stated that any transaction will require approval from the two companies' boards, as well as regulators and shareholders.