MGM and Mandalay each own a casino in Detroit. Michigan law requires that Detroit's three casinos be owned by separate entities. MGM owns the MGM Grand Casino in Detroit. Mandalay owns a majority stake in MotorCity Casino. The deal is subject to state and federal regulatory approval.
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 transaction will give MGM Mirage revenues of about $6.5 billion and control of 28 properties in five states. The combined companies would own about half of the 72,000 hotel rooms on the Las Vegas Strip.
MGM Mirage said in October it had not made a decision about which Detroit casino to sell.
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