U.K based enterprise, Cineworld announced earlier this week that they are no longer working on the proposed $2.1 billion deal to acquire Canada’s Cineplex after Cineplex appears to have breached some of the agreements backing the deal.
Cineworld is U.K ‘s leading multiplex Cinema chain with over 9518 screens in 11 countries. Cineworld Cinemas made the shocking announcement after evidence and proof of breaches from Cineplex Inc.’s end of the deal surfaced.
In a statement responding to the announcement, Cineplex said: “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. The Acquisition will therefore not proceed.”
In addition, Cineworld claims Cineplex denied breaching the terms of the deal and that there was no material adverse effect from their end. In their statement, they said: “Cineworld has complied with all of its obligations under the Arrangement Agreement and it is entitled to terminate the Arrangement Agreement. It will therefore vigorously defend any allegation to the contrary.”
Cineworld’s acquisition agreements with Cineplex was announced back in December 2019. The deal would have seen Cineworld acquire the 1695 screens in 165 cinemas that are operated by Cineplex – one of Canada’s biggest theatrical brand.
Cineworld is currently in a $3.6 billion deal with Regal Entertainment Group and has planned to combine the operations of the Regal Entertainment Group and Cineplex Inc. thus making them the largest cinema chain in North America. Had the Cineplex deal gone through, Cineworld would be operating 11,204 screens ins various cinemas globally and 8,906 screens in Canada and the U.S.