China's Wanda Group Gets Regulatory Approval to Buy AMC Entertainment
Two U.S. government agencies and three Chinese authorities have given their stamp of approval on what will be the world's largest cinema conglomerate.
Dalian Wanda Group has announced that it has passed regulatory hurdles to close its acquisiton of AMC Entertainment Holdings, which will create the world's largest cinema conglomerate.
The deal, valued at $2.6 billion, was officially announced in May. At the time, Wanda, based in Beijing, said it intended to invest up to $500 million in AMC strategic and operating initiatives.
Wanda's acquisition needed to pass regulatory muster in both the U.S. and China, and it has done so rather quickly.
Wanda and AMC say they have received notice from the Committee on Foreign Investment in the U.S. that clears the deal. The FTC has also given approval.
The companies also received blessing in China from the National Development and Reform Commission, China’s Ministry of Commerce and the State Administration of Foreign Exchange.
Wanda now says that the clearances will mean an expected transaction close date at the end of August.
AMC, headquartered in Kansas City, Mo., employs about 18,500 people and owns 346 theaters with 5,034 screens primarily in the United States and Canada.