Two big U.S. movie theater chains are merging in a deal valued at $1.1 billion. Reuters reports that AMC Entertainment Holdings will acquire Carmike Cinemas Inc. to form what will be the largest U.S. theater chain.
“Chinese property and investment firm Dalian Wanda Group had acquired AMC Entertainment for $2.6 billion in 2012,” Reuters reports. “The deal is the latest in a series of acquisitions of U.S. companies and assets by Chinese firms.”
The report adds: “AMC will pay $30 per share in cash to buy all of Carmike’s outstanding shares, which represents a premium of about 19.5 percent to Carmike’s Thursday’s close.”
AMC is the second-largest movie theater chain in North America with 387 locations and 5,426 screens; Carmike has 276 theaters with 2,954 screens in 41 states, the report notes.