In the much-anticipated merger of Six Flags with Cedar Fair, a recent development has thrown a curveball. The Department of Justice (DOJ) has issued a second information request as part of its comprehensive review of the merger agreement.
This second request triggers an extension of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The duration of this extension will persist until either Six Flags and Cedar Fair successfully comply with the request or the DOJ concludes the process unusually.
As per the terms outlined in the merger agreement, both entities are set to certify substantial compliance with the second request by May 2, 2024. However, the completion of the merger hinges on the satisfaction of various closing conditions specified in the agreement, which include obtaining regulatory and shareholder approval.
Despite the additional scrutiny from the DOJ, Six Flags and Cedar Fair continue to exhibit cooperation throughout the review process. Both entities express confidence in finalizing the merger in the first half of 2024, provided all conditions, including regulatory and shareholder approval, are met.
Navigating Uncertainty: The Odds of Closing
The recent DOJ intervention has undoubtedly added a layer of complexity to the merger proceedings. While challenges are apparent, industry analysts suggest that the odds of the merger closing remain favorable. Six Flags and Cedar Fair’s commitment to cooperation and their optimistic outlook on finalizing the merger in H1 2024 speaks to their confidence in overcoming these hurdles.
Stay tuned for further updates on this intriguing corporate development as the merger saga unfolds.
Required reading: Six Flags and Cedar Fair a Game-Changing Merger
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