Canada’s Cineplex has initiated legal proceedings against Regal Cinemas owner Cineworld Group over its failed acquisition deal. Cineworld operated 9,498 screens across 786 sites across the globe, but its acquisition of Cineplex would have added 165 Canadian theatres and 1,695 screens to that count. UK-based Cineworld has terminated a deal that planned for the acquisition of Canada’s largest movie theatre company. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. This website uses cookies so that we can provide you with the best user experience possible. In February, the mega-deal received approval from both companies’ shareholders. Cineworld agreed to buy Cineplex for C$2.15 billion ($1.55 billion) in December, and said last week it still intends to complete the transaction. But some analysts and investors urged the companies to abandon the transaction, especially when the coronavirus pandemic shuttered the circuits of major exhibitors, including Cineplex and Cineworld, and created high debt and liquidity concerns. The acquisition will therefore not proceed,” the U.K.-based suitor said Friday in a statement. The acquisition would be fully funded by debt. This is Not an Article on Data Protection and Competition Law. International movie theatre chain Cineworld PLC says its deal to buy Cineplex Inc. for $2.8 billion is off, claiming that "certain breaches" of the contract were made by the Canadian company. Cineworld operated 9,498 screens across 786 sites across the globe, but its acquisition of Cineplex would have added 165 Canadian theatres and 1,695 screens to that count. Summary of the transaction Cineworld Group plc ("Cineworld" or the "Company") has signed an arrangement agreement (the "Acquisition Agreement") with Cineplex Inc… “Cineworld has become aware of certain breaches by Cineplex Inc. of the arrangement agreement relating to the acquisition… In addition, a material adverse effect has occurred with respect to Cineplex. Cineworld’s repudiation of the arrangement agreement has been acknowledged by Cineplex and the transaction will not proceed,” the Canadian company said. Cineworld Calls Off $2B Cineplex Movie Theater Deal, FTC Wins Right To Resume Realty Board Antitrust Case, The Brattle Group Welcomes Four New Competition Pros, EC Conditionally OKs Worldline’s Ingenico Acquisition, Senate Committee Issues Subpoenas To Zuckerberg, Pichai & Dorsey, EU: Google promotes rivals to stave off antitrust action. This means that every time you visit this website you will need to enable or disable cookies again. Acquisition of Cineplex, #1 cinema operator in Canada with 75% market share1 Highly synergistic transaction, with approx. Cineworld announced plans to buy Cineplex, the dominant cinema chain in Canada, last December. The acquisition is unanimously supported by Cineworld’s Board of Directors. This website uses cookies to provide you with the best browsing experience. In addition, a material adverse effect has occurred with respect to Cineplex. Cineworld’s $2.8-billion takeover of Cineplex likely won’t happen soon, for reasons related to COVID-19 Andrew Willis Published March 15, 2020 Updated March 15, 2020 “The arrangement agreement explicitly excludes any ‘outbreaks of illness or other acts of God ‘from the definition of material adverse effect and all of Cineworld’s allegations stem from an outbreak of illness and act of God (COVID-19),” the Canadian company said. Regal owner Cineworld has called off its planned $2.1 billion takeover of Canadian exhibitor Cineplex, which would have created one of the world’s largest cinema companies with more than 11,200 screens globally. Cineworld Group plc ("Cineworld") Update on proposed acquisition of Cineplex Inc. (the "Acquisition") Cineworld has become aware of certain breaches by Cineplex Inc. ("Cineplex") of the arrangement agreement relating to the Acquisition (the "Arrangement Agreement"). “Cineplex believes that Cineworld has no legal basis to terminate the arrangement agreement and that Cineworld has breached its contractual obligations. Regal owner Cineworld has called off its planned $2.1 billion takeover of Canadian exhibitor Cineplex, which would have created one of the world’s largest cinema companies with more than 11,200 screens globally. Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world. Canada ’s Cineplex has initiated legal proceedings against Regal Cinemas owner Cineworld Group over its failed acquisition deal. Navigating the New Matchmaker Economy – David S. Evans at George Washington U. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR IMMEDIATE RELEASE 12 June 2020 Cineworld Group plc ("Cineworld") Update on proposed acquisition of Cineplex Inc. (the “Acquisition”) ineworld has become aware of certain breaches by ineplex Inc. (“Cineplex”) of the If you disable this cookie, we will not be able to save your preferences. Want more news? Cineplex is Canada’s biggest operator with 165 cinemas and 1,695 screens. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. In December, Cineworld unveiled the agreement to acquire Cineplex for $1.65 billion in cash, plus debt. Cineworld did not specify what the alleged breaches of the transaction by Cineplex were as it backed out of the deal. As a consequence of these matters and Cineplex’s unwillingness to cure the breaches, Cineworld has notified Cineplex that it has terminated the arrangement agreement with immediate effect. In December 2019, Cineplex announced that it had entered a definitive agreement with Cineworld Group in a proposed transaction that would “create … “Cineworld has become aware of certain breaches by Cineplex Inc. of the arrangement agreement relating to the acquisition… In its own statement on Friday, Cineplex rebuffed Cineworld’s claim that it had breached the terms of their merger agreement and said it will take legal action to recover damages as the transaction does not proceed. Cineworld moved on June 12 to scrap its $1.6 billion acquisitio… US$130m of run-rate combination benefits Application of our operational best practice across Cineplex’s exhibition circuit Post synergy acquisition … In a battle of competing statements on Friday, Cineplex claimed Cineworld’s allegations of breached terms for their merger agreement amounted to “buyer’s remorse” and an attempt to wriggle out of the transaction amid the COVID-19 crisis.