California moviegoers might be interested in learning about the pending $3.6 billion acquisition of Regal Cinemas by Cineworld. The shareholders of Cineworld have approved the deal, which will create the second-largest cinema entity behind AMC.
The merger will result in the new cinema group operating across the U.S. and Europe with 9,542 movie screens. According to Cineworld, 87 percent of its shareholders approved of the deal, clearing the way for it to close by the end of March. Consolidations of cinema groups have been happening with greater frequency because of the pressures that exist in the traditional manner in which people watch movies.
Both Cineworld and Regal Cinemas have market capitalizations that range from $2.5 to $3.5 billion. Regal owns 7,315 movie theaters that are located in 43 U.S. states, the District of Columbia, American Samoa, Guam and Saipan. Cineworld owns 2,217 movie theaters that are located in the U.K., the Czech Republic, Poland, Ireland, Bulgaria, Romania, Israel, Hungary and Slovakia.
Mergers and acquisitions can help companies to expand quickly while shoring up their bottom lines. Businesses that are interested in these types of deals might want to get help from experienced business law attorneys who can assist their clients with conducting thorough research of the target companies and completing analyses so that they can make certain that the potential transactions are in their clients’ best interests. They may also help to guide their clients through the complex processes that may be involved, including compliance with all regulatory matters and gaining shareholder approvals.
Source: Deadline, “Cineworld’s $3.6B acquisition of Regal Cinemas approved by shareholders“, Peter White, Feb. 2, 2018