Cineworld Group plc has announced today that it is to acquire the US-based Regal Entertainment Group for $5.8bn (£4.3bn).
The acquisition will create a globally diversified cinema operator across ten countries and allow Cineworld to access the attractive North American cinema market, which has the largest box office market in the world with an industry box office of greater than US$10bn in each year since 2008 and stable admissions in excess of 1.25 billion in each year over the same period.
Following completion of the acquisition, Cineworld and Regal will have a combined 9,542 screens across the US and Europe making it the second largest operator in the world by number of screens.
Mooky Greindinger, CEO of Cineworld, said, “We have long had high respect for Regal and for its strong position in the largest box office market in the world and we are delighted that the Regal Directors have unanimously agreed to recommend our offer to their shareholders.
'Regal is a great business and provides Cineworld with the optimal platform on which we can continue our growth strategy. Both companies are strongly committed to bringing a high end cinematic experience to their customers.
'Consolidation is an important move forward and the best practice we have successfully rolled out across Europe will be the key driver to continued success. We strongly believe in our strategy which is to create ‘The Best Place to Watch a Movie!’