U.K.-based exhibition circuit Cineworld, parent company of Regal Cinemas, the second-largest exhibition circuit in North America, has called off its acquisition of Canada’s Cineplex.
The deal was originally announced in December 2019 in a move that would add Canada’s largest exhibition circuit to Cineworld’s multi-national network of cinemas. Had the deal been executed as intended, Cineworld would have become the world’s largest cinema circuit with over 11,200 screens in markets that include the United States, Canada, the United Kingdom & Ireland, Czech Republic, Slovakia, Hungary, Bulgaria, Romania, and Israel.
The termination notice from Cineworld cites “certain breaches” to the acquisition agreement by Cineplex as its principal reason to abandon the deal. Cineplex denies those allegations and both exhibitors have stated their intent to take the disagreement to court.
Cineplex released a statement in response to Cineworld’s decision, stating it “believes that Cineworld has no legal basis to terminate the Arrangement Agreement and that Cineworld has breached its contractual obligations.”