Cineworld bids $2.1 billion for Canadian rival cineplex

London: Britain’s Cineworld Group Plc plans to buy Canada’s Cineplex Inc for C$2.15 billion ($1.64 billion), adding to a consolidation push across the movietheatre industry as chains seek scale to defend against the threat of streaming.

Cineworld, which is based in London and derives almost three-quarters of its revenues from North America, will pay C$34 a share for Cineplex, according to a statement from the Toronto-based company on Monday. That’s a 42% premium to the Canadian company’s closing price on Friday.

Cineworld shares reversed an early gain to fall as much as 7.8%, the biggest intraday drop in almost six months.


Movie-theater operators have been combining in a bet that greater efficiencies can counter the risk that on-demand services such as Netflix Inc. will hit attendance. Cineworld’s takeover of Cineplex follows its $3.6-billion purchase of American operator Regal Entertainment Group in 2018, targeted at broadening its growth opportunities beyond the UK and Ireland.

“Top theater chains are gearing up for a challenging 2020 box-office year, as a weaker slate and surge in streaming services could mean another down year for the industry,” Amine Bensaid, analyst at Bloomberg Intelligence, said in a research note last month.