"PNG and Argosy are direct and actual competitors in the casino services market in Baton Rouge," says Susan A. Creighton, director of the FTC's bureau of competition, in a statement. "Absent the relief provided by the commission's order, PNG would gain a monopoly in that market. Columbia Sussex will take over the Argosy casino and continue competing with PNG."
The FTC consent document also says the four-month period can be extended by two months "to allow the state of Louisiana to determine whether to grant the necessary regulatory approvals for the transaction." If Columbia Sussex does not gain regulatory clearance from the state, the FTC consent order provides Penn National with up to 10 months to find a new buyer that "does not present anticompetitive concerns" and is approved by the FTC.
"We continue to prepare for the near-term closing of the [Argosy] acquisition and are presently finalizing our work with the state gaming boards in Illinois, Louisiana and Missouri to obtain their approvals and consents to complete the transaction," Peter M. Carlino, Penn's National's chairman and CEO, said during a second-quarter conference call. He also said Penn National has commenced a tender offer for $550 million in notes issued by Argosy, "another important step in assembling the overall financing for the transaction." He later said he expected both the Argosy acquisition and the sale of the Baton Rouge property to close during this year's third quarter.
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