China’s Dalian Wanda Group announced yesterday it has agreed to buy AMC entertainment in a $2.6 billion deal.
The acquisition will create the world’s largest cinema owner, while allowing more IMAX and 3D films into China.
It will also include nearly $1.9 billion of debt.
“This acquisition will help make Wanda a truly global cinema owner, with theatres and technology that enhance the movie-going experience for audiences in the world’s two largest movie markets,” said Wang Jianlin, Chairman and president of Wanda in a statement.
Wanda plans to invest an additional $500 million to reduce debt and improve theatres, according to Gerardo Lopez, chief executive of AMC’s theatres.
The gain of AMC by Wanda adds thousands of theatres to the foreign chain. According to the release, AMC operates on 5,034 screens in 346 theatres compared to Wanda’s current 730 screens in 86 theatres.
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