StockMarketWire.com - Cineworld said it had struck an agreement to acquire Cineplex, the largest cinema operator in Canada, in a deal worth about $2.1bn.

Cineplex shareholders would receive C$34 in cash for each share owned, valuing the company at C$2.8bn, or US$2.1bn. Cineplex, the largest Canadian cinema operator - by box office revenue and number of screens- had market share of approximately 75% by box office revenue as at 30 September 2019. Cineworld estimated that, following completion, Cineworld and Cineplex would be able to achieve run-rate annualised pre-tax combination benefits of around $130m. The acquisition would advance Cineworld's position in the North American cinema market, following the completion of the Regal acquisition in February last year.

Both Cineworld and Cineplex had approved the acquisition and intended to recommend that their respective shareholders vote in favour of the deal. Story provided by StockMarketWire.com