Eldorado Resorts and Caesars Entertainment have entered into a merger agreement which will see the creation of the largest gaming company in the US.

The proposed transaction will combine two leading gaming companies with complementary national operating platforms, strong brands, strategic industry alliances and a collective commitment to enhancing guest service and shareholder value.

The combined company will provide its guests with access to approximately 60 domestic casino resorts and gaming facilities across 16 states. The transaction is transformational for each company’s shareholders, employees and customers.

Eldorado will acquire all of the outstanding shares of Caesars for a total value of $12.75 per  share, which reflects total consideration of around $17.3bn, comprised of $7.2bn in cash, which equates around 77 million Eldorado common shares and the assumption of Caesars’ outstanding net debt.

Shareholders at Caesars will be offered a consideration election mechanism which is subject to proration pursuant to the definitive merger agreement. This gives effect to the transaction, Eldorado and Caesars shareholders will hold approximately 51 percent and 49 per cent of the combined company’s outstanding shares, respectively.

Upon the completion off the deal, the combined company will retain the Caesars name to capitalise on the value of the iconic global brand, as well as the legacy of the leadership in the global gaming industry. The new company will be continuing to trade on the Nasdaq Global Select Market.