Cineplex gets approval for purchase of 24 Empire theatres in Atlantic Canada

TORONTO -- Cineplex Entertainment (TSX:CGX) said Thursday it can go ahead with its acquisition of 24 Empire theatres in Atlantic Canada.

Canada's largest chain of movie theatres said approval from the Competition Bureau means the deal will proceed and was expected to close by the end of the month.

The acquisition is valued at approximately $194 million.

The Toronto-based company said its original proposal also included the purchase of two theatres in Ontario -- located in Kanata and Whitby -- but it will no longer buy these properties.

Empire Company Ltd. (TSX:EMP.A) announced in June that it was getting out of the movie theatre business to focus on its Sobeys grocery store chain. In addition to the theatres sold to Cineplex, Empire sold another 20 locations in Ontario and Western Canada to Landmark Cinemas.

With the purchase, Cineplex will operate a total of 161 theatres across the country.