Penn National given green light for Pinnacle deal
Penn National Gaming has secured regulatory approval from the Missouri Gaming Commission (MGC) for its pending acquisition of Pinnacle Entertainment.
The $2.8bn plus stock acquisition deal between the two US operators was first announced last December, with Penn set to own around 78% of the company after the merger.
The MGC became the 12th gaming regulatory body to approve the transaction.
Timothy J. Wilmott, CEO of Penn National, said: “Reflecting the progress we have made to date with securing regulatory approvals, and the timeline we have established for the remaining requisite approvals, we remain on schedule to complete the transaction early in the fourth quarter.”
Shareholders of both Penn National and Pinnacle have already expressed their overwhelming desire for the merger when their approval was put to a vote, with 99% of votes in favour of the transaction.
A merger is also popular among shareholders, as it’s expected to generate $100m in annual cost synergies during its first year of completion, as well as creating a complementary portfolio of properties.
If the merger completes, Penn National will operate 41 properties in its portfolio, including 8,300 hotel rooms, over 53,000 slots and 1,300 table games.
The deal still requires further regulatory approval.
However, there is now an undeniable momentum behind the acquisition, thanks to the 12 regulatory bodies that have already approved it.
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