The U.S. Department of Justice won’t force the sale of Southern California rivals Six Flags Magic Mountain or Knott’s Berry Farm in approving the $8 billion merger of the two parent companies into a North American amusement park juggernaut.
Six Flags and Cedar Fair have met the regulatory conditions and will be permitted to merge on Monday, July 1 following a review process by the Department of Justice, according to a joint statement issued by the companies on Wednesday, June 26.
Cedar Fair’s CEO Richard Zimmerman will retain the same position in the combined company that will be renamed Six Flags Entertainment Corporation and Six Flags CEO Selim Bassoul will become the new chairman of the board.
The Justice Department could have required the newly combined company to sell off Magic Mountain or Knott’s in order to encourage competition in the Southern California marketplace.
Together, Cedar Fair and Six Flags will have a portfolio of 27 amusement parks and 15 water parks in the United States, Canada and Mexico that attract 48 million visitors a year.
The Southern California rivals are the most visited parks in each of the current chains.
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Knott’s Berry Farm (3.9 million) and Six Flags Magic Mountain (3 million) both rank among the Top 20 North American amusement parks, according to the TEA/AECOM annual report.
Knott’s and Magic Mountain share some fans, but are on opposite sides of the Los Angeles metropolis. Southern California is home to seven theme parks and the local Cedar Fair and Six Flags locations have coexisted and competed in the region for decades.
There are plenty of differences between the two parks. Knott’s has long positioned itself as one of America’s oldest theme parks with themed lands akin to Disneyland. Magic Mountain is a “steel park” that brags about having more roller coasters than any other amusement park in the world.
Source:: The Mercury News – Entertainment
