Cedar Fair, Six Flags agree to $8 billion theme park merger
Cedar Fair and Six Flags Thursday announced an $8 billion "merger of equals." The combined company will operate 42 parks and 9 resort properties across 17 U.S. states. File Photo by Bill Greenblatt/UPI | License Photo
Nov. 2 (UPI) -- Cedar Fair and Six Flags amusement park operators said Wednesday they are entering a merger of equals transaction to create a combined company valued at approximately $8 billion.
When this merger closes Cedar Fair shareholders will own approximately 51.2% of the new combined company while Six Flags shareholders will own 48.8%.
The companies did not disclose whether employees will lose jobs in the merger.
"Our merger with Six Flags will bring together two of North America's iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance," said Cedar Fair CEO Richard Zimmerman in a statement.
Both companies' boards of directors approved the merger.
"The combination of Six Flags and Cedar Fair will redefine our guests' amusement park experience as we combine the best of both companies," Six Flags CEO Selim Bassoul said in a statement. "Six Flags and Cedar Fair share a strong cultural alignment, operating philosophy, and steadfast commitment to providing consumers with thrilling experiences."
Zimmerman will be the CEO and President of the combined company. Bassoul will be the executive chairman of the combined company's board of directors.
The combined company will operate 27 amusement parks, 15 water parks and 9 resort properties across 17 states in the United States, Canada and Mexico.
According to the two companies, benefits of the merger include "an expanded and diversified footprint, a more robust operating model and a strong revenue and cash flow generation profile."
The companies also expect significant cost savings and increased revenue.
"Cedar Fair and Six Flags expect the combined company will benefit from the significant value created by total anticipated annual synergies of $200 million," their joint statement said. " Approximately $120 million of these synergies are expected to be related to identified administrative and operational cost savings, which the companies anticipate realizing within two years following transaction close."
Cedar Fair and Six Flags Thursday announced an $8 billion "merger of equals." The combined company will operate 42 parks and 9 resort properties across 17 U.S. states. File Photo by Bill Greenblatt/UPI | License Photo
Nov. 2 (UPI) -- Cedar Fair and Six Flags amusement park operators said Wednesday they are entering a merger of equals transaction to create a combined company valued at approximately $8 billion.
When this merger closes Cedar Fair shareholders will own approximately 51.2% of the new combined company while Six Flags shareholders will own 48.8%.
The companies did not disclose whether employees will lose jobs in the merger.
"Our merger with Six Flags will bring together two of North America's iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance," said Cedar Fair CEO Richard Zimmerman in a statement.
Both companies' boards of directors approved the merger.
"The combination of Six Flags and Cedar Fair will redefine our guests' amusement park experience as we combine the best of both companies," Six Flags CEO Selim Bassoul said in a statement. "Six Flags and Cedar Fair share a strong cultural alignment, operating philosophy, and steadfast commitment to providing consumers with thrilling experiences."
Zimmerman will be the CEO and President of the combined company. Bassoul will be the executive chairman of the combined company's board of directors.
The combined company will operate 27 amusement parks, 15 water parks and 9 resort properties across 17 states in the United States, Canada and Mexico.
According to the two companies, benefits of the merger include "an expanded and diversified footprint, a more robust operating model and a strong revenue and cash flow generation profile."
The companies also expect significant cost savings and increased revenue.
"Cedar Fair and Six Flags expect the combined company will benefit from the significant value created by total anticipated annual synergies of $200 million," their joint statement said. " Approximately $120 million of these synergies are expected to be related to identified administrative and operational cost savings, which the companies anticipate realizing within two years following transaction close."
South Korea’s Main Airlines Agree On Plan to Push Merger Through
Heejin Kim
Wed, November 1, 2023
In this article:
(Bloomberg) -- Asiana Airlines Inc. agreed to a plan on merging with Korean Air after holding long-running talks to overcome concerns about how their combination might impact competition on European routes.
The plan, signed off at a board meeting Thursday, includes selling Asiana’s cargo business to another South Korean carrier, removing the main obstacle to the merger. Others will also be allowed to use the airlines’ Seoul to Paris, Frankfurt, Rome and Barcelona routes.
European regulators feared that if Korean Air took over Asiana, a move first proposed in 2020, it would threaten competition on airfreight services to and from Europe, as well as passengers routes.
Read More: Korean Air Seeks to Fix EU Concerns Over $1.3 Billion Asiana Buy
Three Asiana board members voted in favor of the plan, one opposed it and another abstained, a spokeswoman at Asiana told Bloomberg News.
Korean Air said it will submit the new proposals to European authorities and await a decision. The airline aims to win approval by the end of January.
It is also awaiting the nod from the US and Japan. The airline said it will talk with US authorities and submit a proposal to Japan, with expectations of a decision in early 2024.
“While Korean Air continues its efforts to secure approval from the European Commission, the airline will also communicate closely with the remaining regulatory bodies to finalize the approval process as quickly as possible,” a Korean Air spokesperson wrote in a text message to Bloomberg News.
Others such as China and the UK have already given the green light to the plan.
Korean Air said it will seek a buyer that guarantees Asiana’s cargo workers keep their jobs.
“Korean Air proposed alternative ways to ease competition concerns but the EC rejected all of them — the cargo business sale was the only option to propose for winning approval,” the spokesperson said.
State-run Korea Development Bank has injected 3.6 trillion won ($2.7 billion) of taxpayers’ money into trying to salvage debt-ridden Asiana. When outlining the merger in 2020, KDB said it would give South Korea a single, competitive national airline amid restructuring and consolidation in the industry.
Having surged in anticipation of an agreement being reached, Asiana’s shares slid Thursday afternoon in Seoul, dropping 7.7% as of 2:45 p.m.
More on mergers in the aviation industry:
Spirit CEO Says Pandemic Losses Pushed It to JetBlue Merger
Italy Sees Closing of ITA Stake Sale to Lufthansa by End of 2024
Air India Plots Rapid Buildout of Budget Unit, Taking On Indigo
Air France-KLM Takes SAS Stake in $1.2 Billion Restructuring
Heejin Kim
Wed, November 1, 2023
In this article:
(Bloomberg) -- Asiana Airlines Inc. agreed to a plan on merging with Korean Air after holding long-running talks to overcome concerns about how their combination might impact competition on European routes.
The plan, signed off at a board meeting Thursday, includes selling Asiana’s cargo business to another South Korean carrier, removing the main obstacle to the merger. Others will also be allowed to use the airlines’ Seoul to Paris, Frankfurt, Rome and Barcelona routes.
European regulators feared that if Korean Air took over Asiana, a move first proposed in 2020, it would threaten competition on airfreight services to and from Europe, as well as passengers routes.
Read More: Korean Air Seeks to Fix EU Concerns Over $1.3 Billion Asiana Buy
Three Asiana board members voted in favor of the plan, one opposed it and another abstained, a spokeswoman at Asiana told Bloomberg News.
Korean Air said it will submit the new proposals to European authorities and await a decision. The airline aims to win approval by the end of January.
It is also awaiting the nod from the US and Japan. The airline said it will talk with US authorities and submit a proposal to Japan, with expectations of a decision in early 2024.
“While Korean Air continues its efforts to secure approval from the European Commission, the airline will also communicate closely with the remaining regulatory bodies to finalize the approval process as quickly as possible,” a Korean Air spokesperson wrote in a text message to Bloomberg News.
Others such as China and the UK have already given the green light to the plan.
Korean Air said it will seek a buyer that guarantees Asiana’s cargo workers keep their jobs.
“Korean Air proposed alternative ways to ease competition concerns but the EC rejected all of them — the cargo business sale was the only option to propose for winning approval,” the spokesperson said.
State-run Korea Development Bank has injected 3.6 trillion won ($2.7 billion) of taxpayers’ money into trying to salvage debt-ridden Asiana. When outlining the merger in 2020, KDB said it would give South Korea a single, competitive national airline amid restructuring and consolidation in the industry.
Having surged in anticipation of an agreement being reached, Asiana’s shares slid Thursday afternoon in Seoul, dropping 7.7% as of 2:45 p.m.
More on mergers in the aviation industry:
Spirit CEO Says Pandemic Losses Pushed It to JetBlue Merger
Italy Sees Closing of ITA Stake Sale to Lufthansa by End of 2024
Air India Plots Rapid Buildout of Budget Unit, Taking On Indigo
Air France-KLM Takes SAS Stake in $1.2 Billion Restructuring
Bloomberg Businessweek
Asiana backs sale of cargo unit, removing one hurdle to Korean Air merger
Wed, November 1, 2023
By Heekyong Yang and Hyunsu Yim
SEOUL (Reuters) - South Korea's Asiana Airlines said on Thursday its board had approved the sale of the company's cargo business - an important step towards allaying EU competition concerns about a proposed takeover by Korean Air Lines.
Korean Air, the country's biggest carrier, said in a statement following the decision that it had submitted a package of remedies to the European Commission - remedies that also include it divesting routes to some European Union cities.
Analysts said, however, that Asiana's greenlighting of the cargo unit sale did not necessarily ensure smooth sailing ahead for the deal.
They noted the desired valuation for the air cargo unit of some 700 billion won ($520 million) including debt, as reported by local media, was probably too high. That could become a new stumbling block for the sale and hence regulatory approval.
"The price seems to be way too expensive, and there aren't that many players at home with the means to spend that much money on Asiana's debt-ridden cargo unit ... there are lingering uncertainties," said Bae Se-ho, an analyst at Hi Investment & Securities.
And even if the deal gets the nod from the European Union, it still needs approval from the United States and Japan, analysts also noted.
Korean Air said in a statement that while it was continuing with "its efforts to secure the approval from the European Commission, the airline will also communicate closely with the remaining regulatory bodies to finalize the approval process as quickly as possible."
Approving the sale was a contentious issue at Asiana amid concerns that a takeover by Korean Air would lead to the loss of many Asiana jobs. Just this week, one board member resigned ahead of the vote, although the reasons for the departure were not disclosed.
In the end, three board directors voted in favour, while one opposed the plan and one abstained, a source familiar with the matter said, declining to be identified.
Korean Air also said it will buy 300 billion won of convertible bonds issued by Asiana, part of fresh financial support to the smaller airline.
Any takeover of Asiana by Korean Air would come amid a wave of consolidation in the industry, with Lufthansa acquiring a 41% stake in Italy's ITA Airways and British Airways and Iberia owner IAG buying the remaining 80% of Spanish carrier Air Europa it does not already own.
Asiana creditors, including state-run lender Korea Development Bank, have been looking for a new owner for the debt-laden carrier for several years. Korean Air agreed to acquire Asiana in 2020.
As of end-June, Asiana had debt of more than 13 trillion won.
The company accounts for about a fifth of South Korea's market for overseas air cargo. With 11 cargo planes, its service encompasses 21 routes to 25 cities in 12 countries, including the United States, Germany and Russia.
Shares in Asiana closed down 8.7%, a decline analysts attributed to a lack of potential positive news for the airline now that the sale has been approved.
($1 = 1,342.9900 won)
(Reporting by Joyce Lee, Heekyong Yang and Hyunsu Yim; Editing by Edwina Gibbs)
Asiana backs sale of cargo unit, removing one hurdle to Korean Air merger
Wed, November 1, 2023
By Heekyong Yang and Hyunsu Yim
SEOUL (Reuters) - South Korea's Asiana Airlines said on Thursday its board had approved the sale of the company's cargo business - an important step towards allaying EU competition concerns about a proposed takeover by Korean Air Lines.
Korean Air, the country's biggest carrier, said in a statement following the decision that it had submitted a package of remedies to the European Commission - remedies that also include it divesting routes to some European Union cities.
Analysts said, however, that Asiana's greenlighting of the cargo unit sale did not necessarily ensure smooth sailing ahead for the deal.
They noted the desired valuation for the air cargo unit of some 700 billion won ($520 million) including debt, as reported by local media, was probably too high. That could become a new stumbling block for the sale and hence regulatory approval.
"The price seems to be way too expensive, and there aren't that many players at home with the means to spend that much money on Asiana's debt-ridden cargo unit ... there are lingering uncertainties," said Bae Se-ho, an analyst at Hi Investment & Securities.
And even if the deal gets the nod from the European Union, it still needs approval from the United States and Japan, analysts also noted.
Korean Air said in a statement that while it was continuing with "its efforts to secure the approval from the European Commission, the airline will also communicate closely with the remaining regulatory bodies to finalize the approval process as quickly as possible."
Approving the sale was a contentious issue at Asiana amid concerns that a takeover by Korean Air would lead to the loss of many Asiana jobs. Just this week, one board member resigned ahead of the vote, although the reasons for the departure were not disclosed.
In the end, three board directors voted in favour, while one opposed the plan and one abstained, a source familiar with the matter said, declining to be identified.
Korean Air also said it will buy 300 billion won of convertible bonds issued by Asiana, part of fresh financial support to the smaller airline.
Any takeover of Asiana by Korean Air would come amid a wave of consolidation in the industry, with Lufthansa acquiring a 41% stake in Italy's ITA Airways and British Airways and Iberia owner IAG buying the remaining 80% of Spanish carrier Air Europa it does not already own.
Asiana creditors, including state-run lender Korea Development Bank, have been looking for a new owner for the debt-laden carrier for several years. Korean Air agreed to acquire Asiana in 2020.
As of end-June, Asiana had debt of more than 13 trillion won.
The company accounts for about a fifth of South Korea's market for overseas air cargo. With 11 cargo planes, its service encompasses 21 routes to 25 cities in 12 countries, including the United States, Germany and Russia.
Shares in Asiana closed down 8.7%, a decline analysts attributed to a lack of potential positive news for the airline now that the sale has been approved.
($1 = 1,342.9900 won)
(Reporting by Joyce Lee, Heekyong Yang and Hyunsu Yim; Editing by Edwina Gibbs)
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