China’s Wanda Group to Acquire AMC Entertainment
The New York Times reports that Chinese tycoon Wang Jianlin’s will pay $2.6 billion to acquire AMC Entertainment – North America’s second largest movie theater company. AMC will be integrated into Mr. Wang’s Wanda Group – a made in China global brand. The deal will likely be approved by U.S. regulators.
In addition to the $2.6 billion designated for the acquisition, Wanda Group will invest $500 million in AMC in North America. Mr. Wang plans to keep AMC’s management in place with long-term pay incentives and he plans to invest heavily in renovating older American theaters in an effort to bolster revenue. Much of the cash for this deal will come from China’s state-controlled banks.
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Wanda Group has experienced 30 percent growth in the last year and Mr. Wang expects that by 2015 it will have overall revenue of about $30 billion.
Last Updated on May 28, 2012 by Ramin Seddiq