Posted on: Thursday, February 17, 2005

MGM Mirage deal gets FTC approval

By Adam Goldman
Associated Press

LAS VEGAS — The Federal Trade Commission yesterday approved MGM Mirage's proposal to buy rival Mandalay Resort Group, a move that could give one of the world's largest gambling companies control of 11 resorts on the Las Vegas Strip.

MGM Mirage still needs Nevada and other state gambling regulators to approve the deal, which executives expect will come soon.

"We are very pleased to learn that, after an extensive and detailed investigation, the FTC has unanimously approved our merger with Mandalay citing no competitive concerns to the Nevada gaming industry," said Terry Lanni, MGM Mirage's chairman and chief executive.

Nevada regulators are scheduled to consider the matter next week.

In June, MGM Mirage agreed to purchase Mandalay for $4.8 billion in cash, $2.5 billion in debt and $600 million convertible debentures. The company has secured financing for the merger.

Combining the Las Vegas-based companies will give MGM Mirage revenues of about $6.5 billion and control of 28 properties in Nevada, Illinois, New Jersey, Michigan and Mississippi.

The companies would claim half of the 74,424 hotel rooms and about 40 percent of the slot machines on the Strip. Those numbers will slide slightly when Wynn Resorts Ltd.'s 2,700-room Wynn Las Vegas and the 949-room tower at Caesars Palace open later this year.

Many of the world's most famous casinos, The Mirage, Bellagio, MGM Grand, Circus Circus, Luxor and Mandalay Bay, would fall under the new MGM Mirage corporate umbrella.