MGM Resorts has ended talks over a potential acquisition of the Encore Boston Harbor, Wynn Resorts’ soon-to-open venue in Massachusetts.
Talks of a potential deal only emerged last week, though analyst reaction to the planned acquisition was muted.
Furthermore, it would have forced MGM to sell its MGM Springfield hotel and casino complex, which only opened in August 2018. Massachusetts gaming laws prohibit an operator from owning more than a single casino resort in the state.
Announcing the end of talks, MGM reiterated its commitment to its the Springfield facility.
“We are committed to our Springfield community and proud of what we have accomplished including thousands of jobs and millions of dollars of revenue for small businesses in the area,” it said.
The discussions regarding the Encore Boston Harbor resort, located in Everett, came as part of its commitment to deepening its engagement in the state, it said.
“We have noted the anxiety raised by various stakeholders regarding a transaction and this troubles us at MGM,” the operator continued. “We only wish to have a positive impact on communities in which we operate.
“We think the best course of action is to discontinue discussions concerning this opportunity,” it added. “We wish the company and the Everett community all the best and look forward to visiting their beautiful resort when it opens and welcoming the 5,600 employees to our industry.”
Acknowledging the termination of talks, Wynn that it prides itself on the design, development and operation of its resorts.
“At times, world class assets attract the attention of others and our board takes seriously its fiduciary duty to review such interest,” it said. “After careful consideration we have agreed to cease discussions with MGM Resorts.
“We remain committed to opening and operating Encore Boston Harbor as only Wynn Resorts is able to do.”
Earlier this month Wynn chief executive Matt Maddox said the Encore would open as planned later this year. It is expected to open its doors to the public from June 23.