The Wall Street Journal reports that China's Wanda Group has agreed to acquire U.S. cinema chain AMC Entertainment for around $2.6 billion in a deal rumored since early May:
The deal announced late Sunday would give China's Dalian Wanda Group Corp. access to AMC's 346 multiplex theaters with more than 5,000 screens, mostly in the U.S. and Canada. As part of the deal, Wanda plans to invest up to an additional $500 million in AMC, which the U.S. chain can use to update its cinemas' technological innovations and reduce debt.
In a statement, Wang Jianlin, chairman and president of Wanda, said the acquisition "will help make Wanda a truly global cinema owner, with theater and technology that enhance the movie-going experience for audiences in the world's two largest movie markets."
The deal is subject to regulatory approval from U.S. and Chinese authorities, the companies added.