AMC buying Carmike in blockbuster cinema deal

Chinese-owned AMC Entertainment has agreed to purchase Carmike Cinemas in a $1.1 billion deal that creates the world's largest movie theater chain, the companies said Thursday. AMC, which sat at 5,426 screens, will now own more than 600 theater locations across 45 states and Washington D.C.

The deal is the biggest by AMC since it returned to the public markets in a 2013 stock sale, and it represents a bold effort by AMC's controlling investor, Wang Jianlin (王健林) of China's Dalian Wanda Group (大連萬達集團), to consolidate the USA cinema industry. If the deal goes through, the combined chain would have 8,380 screens.

The deal isn't entirely unexpected as activist investor Oasis Management LLC in October unveiled a 5% stake in Columbus, Ga.-based Carmike and pushed it to "explore a sale".

This is another big acquisition for the Dalian Wanda Group, which announced last month that it acquired Legendary Entertainment.

Wanda is also behind a multibillion-dollar studio complex being built in eastern China that was used to shoot the upcoming movie, "The Great Wall". AMC has 387 theaters, primarily concentrated in larger markets including Los Angeles, Chicago and NY.

AMC CEO Adam Aron said he hopes the combination will boost profits in 2017 and enable about $35 million in annual savings, while bringing upscale amenities like alcohol service, reclining chairs, and expanded food offerings to more venues.

In July, AMC announced a $172 million agreement to buy Dallas-based Starplex Cinemas Inc. from private equity shop Trinity Hunt Partners LP, also of Dallas. The combined company will be headquartered in Leawood, Kansas.

Obama will cite health insurance gains in visit to Milwaukee
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