A China-based conglomerate announced Monday that it has purchased AMC Entertainment for $2.6 billion.
The Wanda Group signed a merger and acquisition agreement North America's second largest theater chain following two years of negotiations, according to a news release.
Besides the $2.6 billion purchase price, Wanda has vowed to put another $500 million into AMC operations after the merger, officials said. AMC has a theater at the.
AMC Entertainment Inc. was listed as the world’s number two theater chain, with $2.5 billion in revenue 20,000 employees in 2011, officials said. The company owns 346 multiplex theaters nationwide, with a total of 5,038 screens. The company is based Kansas City, Mo.
The Wanda Group, founded in 1988, operates in five major industries, including commercial real estate, luxury hotels, tourism investment, cultural entities, and a department store chain. The company has assets of $35 billion, an annual income of $16.7 billion, and pays $2.6 billion in taxes.
Negotiations between Wanda and AMC began in 2010. China’s National Development and Reform Commission approved the merger report in March, according to the news release. More approvals are needed, including the green light from China’s Ministry of Commerce and the State Administration of Foreign Exchange. U.S. authorities also must approve the deal.
Once complete, Wanda Group, which owns Asia’s Wanda Cinema Line, will become the world’s largest cinema operator, officials said.