Wang Jianlin, chairman of Chinese conglomerate Wanda Group, which is buying… (David Pierson )
Chinese conglomerate Dalian Wanda Group announced that it has received regulatory approvals for its planned acquisition of AMC Entertainment, the second largest theater chain in the U.S.
Wanda and AMC said Wednesday that they received notice from the Committee on Foreign Investment in the U.S. that the inter-agency committee has cleared the transaction.
The owner ofChina'slargest movie theater circuit announced in May that it had reached an agreement to buy AMC’s 5,034 screens in 346 theaters in the U.S. and Canada for $2.6 billion, creating the world's largest cinema operator.
The Kansas City, Mo., theater chain is owned by several investment firms, including JPMorgan Partners, Apollo Investment Fund and Bain Capital Investors.
The deal marks the largest investment to date by a Chinese company in the U.S. entertainment industry and gives Wanda a foothold in this country's movie theater business.
The companies had previously received notice from the Federal Trade Commission of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in relation to the transaction.
China's top economic planning agency, the National Development and Reform Commission, has given Wanda approval to proceed with its proposed acquisition, as have China's Ministry of Commerce and State Administration of Foreign Exchange, the companies said in a statement.
Wanda and AMC expect to complete the transaction at the end of August.
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