DoJ Asks AMC To Divest Two Movie Theaters In Order To Complete Starplex Deal

(RTTNews) - The Department of Justice announced that it has reached a settlement with AMC Entertainment Holdings Inc. (AMC) and SMH Theatres Inc. or Starplex Cinemas that requires AMC to divest movie theaters in Connecticut and New Jersey, in order to proceed with its $172 million acquisition of Starplex Cinemas.

The Antitrust Division and the State of Connecticut filed a civil antitrust lawsuit today in U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the department and the Connecticut Attorney General filed a proposed settlement that would resolve the competitive concerns alleged in the lawsuit.

Under the terms of the proposed consent decree, the Starplex Town Center Plaza 10 in East Windsor, New Jersey, and the Starplex Berlin 12 in Berlin, Connecticut, must be divested to a buyer or buyers approved by the United States.

AMC, a Delaware corporation, operates 349 theaters with a total of 4,975 screens in locations primarily throughout the United States. Its U.S. box office revenues were approximately $1.8 billion in 2014.

Starplex Cinemas, a Dallas-based company, owns and operates 33 movie theaters with a total of 346 screens in 12 states. Its U.S. box office revenues were approximately $57 million in 2014.