Last month, the CEO of Las Vegas Sands – Sheldon Adelson publicly announced the acquisition and merger of the M & A casino with another well-known casino operator.
Analyzed by Union Gaming bank experts – John DeCree, he has listed three executives that could become partners with the Las Vegas giant. He also considered that three casino operators that can become targets for cooperation with Las Vegas are Crown Resorts, Okada Manila and Wynn Resorts. Among them, Wynn is considered as the brightest candidate for the position. Because the acquisition and merger of casino operators with Las Vegas will be a significant strategic significance for Las Vegas Sands.
During the company’s first quarterly fundraising meeting, Union Gaming analysts stated that they were very appreciative of cooperating with M & A aerial casino. Mr. Adelson added that they would be able to accept one or lots of activities as long as the costs are good.
The veteran casinos of his company in the casino industry have “the best balance sheets” in the industry. In addition, its market capital is equal to the total market capital of all casinos in the United States combined. According to statistics, the market capital of Las Vegas Sands has more than 37 billion dollars.
At the same meeting earlier last month, the analyst said that he wanted to add to the acquisition, construction and development strategy, so he did not deny plans to give up the development of resorts integrated.
Why will Las Vegas Sands choose Wynn as the partner in the future?
Why Wynn Acquisition Makes Most Sense?According to DeCree, the acquisition of Wynn would make the most sense for Las Vegas Sands, because it would add $1.6 billion in EBITDA as well as cost synergies, and would give the company an additional 2,700 hotel rooms in Macau. Las Vegas Sands will also significantly increase its exposure to Macau’s higher-end premium mass and VIP markets.
The acquisition of Wynn will bring a huge profit to Las Vegas with over billions of dollars in EBITDA as well as other huge expenses and over 2,700 hotel rooms in Macau. In addition, Las Vegas also has the opportunity to expand the VIP market and high-end players of the Macau market.
Meanwhile, Wynn will be primarily responsible for the VIP segment while Las Vegas Sands is one of the leading mass market companies in Macau. However, according to Union Gaming, the acquisition of the entire value of Wynn’s assets in Macau is hard to imagine but with the power of Las Vegas, they can buy back at least 1 of their assets.
The other targets of Las Vegas Sands – Okada Manila and Crown Resorts
According to Union Gaming research, Crown Resorts and Okada Manila are two other acquisition options of Las Vegas Sands.
For the acquisition of Okala Manila, this will be the first step for Las Vegas Sands’ expansion into the Asian market. Okada Manila is currently the operator of property warehouses in Singapore and Macau.
According to Mr. Adelson, the casino market in the Philippines is no longer competing with Macau or Las Vegas for fair and transparent rules. They believe that the casino area has many requirements and the factors based on the large supply make Macau an attractive investment 15 years ago.
Union Gaming also said that $300 million of EBITDA would be generated by Okada Manila.
Meanwhile, Crown Resorts – Australia’s famous casino operator is also considered to be one of the partners of the Las Vegas giant. This operator owns a lot of high quality assets in the world and solid cooperation with Chinese VIP business.
However, the Australian executive is caught up by a number of allegations of alleged ties with organized crime in Asia to discourage the purchase of Las Vegas Sands.
At the same meeting last month, Mr. Adelson said that Asia is a fertile town and the best place for his company. Therefore, the 3 selected companies all have solid growth in Asia. After reopening, Asian casinos will be able to continue growing at a faster pace to be able to reclaim these times. Las Vegas executives also expressed their desire to buy the best casinos in Asia in the near future, if they find a suitable location.