China’s Wanda Group acquires AMC movie theatre chain for $2.6B
Hostesses prepare to serve wine after a signing ceremony for Dalian Wanda Group Co. to acquire AMC Entertainment Holdings in Beijing, China, Monday, May 21, 2012. The Chinese conglomerate bought the U.S. cinema chain, AMC Entertainment Holdings, for $2.6 billion to create the world's biggest movie theater operator. (AP/Ng Han Guan)
Published Tuesday, September 4, 2012 4:19PM EDT
NEW YORK - Chinese conglomerate Wanda says it has closed on the acquisition of AMC Entertainment Holdings, one of the largest movie theatre chains in the U.S.
The $2.6 billion deal is the largest takeover yet of a U.S. company by a Chinese firm. It also makes Wanda the world's largest owner of cinemas.
Dalian Wanda Group Co.'s purchase reflects the global ambitions of cash-rich Chinese companies that are using acquisitions to speed their expansion.
The Beijing-based company said it will invest an additional $500 million in AMC and keep its headquarters in Kansas City, Missouri.
AMC operates 338 cinemas. It's owned by a group of private-equity firms.
Wanda, founded in 1988 and privately owned, operates hotels, department stores, tourism and other businesses. It has 94 theatres in China.