|US casino company Boyd Gaming Corp. is to buy Coast Casinos Inc. for $820 million in cash and stock. The deal also includes Boyd assuming $460 million in debt. Coast Casino shareholders will get about $495 million in cash and about $325 million worth of Boyd shares according to a report in the Wall Street Journal, citing people familiar with the deal. |
The deal represents a chance for Boyd to expand in Las Vegas’ emerging local market, which caters to the city's dedicated gamblers. The $2 billion local market includes casinos scattered across the town's suburbs and is seen as attractive because it is less vulnerable to tourist fears of air travel. Boyd's main rival in the local market is Station Casinos Inc. The merger is expected to be complete by mid-year. Las Vegas-based Boyd Gaming has casinos such as the Borgata in Atlantic City, a joint venture with MGM Mirage.