According to reports federal regulators with the Federal Trade Commission (FTC) unanimously approved a plan for Pinnacle Entertainment to purchase Ameristar Casinos. The general mission of the FTC is to prevent or minimize business practices that are unfair to consumers, are anticompetitive or deceptive. FTC tries to accomplish this without overly burdening the progress of legitimate business transactions or activities.
In this case, FTC originally voiced concern over Pinnacle Entertainment having too much control in certain areas of the casino entertainment business. In order to approve the deal, FTC mandated Pinnacle to sell not only a casino in another state but also a project planned in the state of Louisiana. The hope was that this latest FTC approval to purchase Ameristar Casinos by Pinnacle would continue to maintain the competitive edge, and ensure that the visitors to casinos would benefit from competitive prices.
However the FTC noted that without sale of the other casino and project planned in Louisiana, this transaction would have potentially allowed Pinnacle to raise prices post-acquisition by offering less favorable rake and hold rates, less favorable table game rules and by lowering player reinvestment. The FTC approval was welcomed, and among other states, the state of Louisiana approved the merger.
Every business wants to be competitive in this global economy. Acquisitions and mergers can benefit a business but the transactions surrounding mergers can get complex. Businesses may require the legal expertise of a firm familiar not only with business law and mergers but also with negotiating with federal regulators who may want to prevent a merger from moving forward.
Regardless of a business’ aspirations and needs, a law firm familiar with acquisitions and mergers can help a company achieve its business goals.
Source: Card Player, “Pinnacle Gets FTC Approval For Casino Merger,” Brian Pempus, August 14, 2013