Six Flags Entertainment and Cedar Fair, operators of amusement parks, have reported that the U.S. Department of Justice (DOJ) is examining their proposed merger and has issued a second request for additional information and documents.
This latest inquiry by the DOJ coincides with a period of heightened anti-trust scrutiny for U.S. deals, with both regulatory bodies and consumer interest groups closely monitoring such transactions.
The merger between Six Flags and Cedar Fair, disclosed in November 2023, carries an estimated value of approximately $8 billion, inclusive of debt. The decision to merge was prompted by the companies’ struggle to combat reduced demand at their amusement parks amid post-pandemic uncertainties, leading consumers to exercise caution in their spending habits.
In response to the DOJ’s requests, Six Flags and Cedar Fair have committed to providing the necessary information by May 2. Despite the additional scrutiny, they maintain their expectation that the merger will be finalized in the first half of 2024.
