WASHINGTON May 20 Cinemark Holdings Inc
, which owns 467 theaters in the United States and Latin
America with more than 5,000 screens, has won U.S. antitrust
approval to buy Rave Holdings LLC movie theaters if the
companies sell theaters in three states, the Justice Department
said on Monday.
The department said it filed the settlement in U.S. District
Court requiring the divestiture of one theater each in Kentucky,
New Jersey and Texas. The company also will be required to sell
Movie Tavern, a string of 16 movie theaters controlled by
Cinemark had announced in November that it would buy Rave
Holdings, which had more than 30 theaters in 12 states.
The Justice Department put the value of the deal at $220
"If no longer motivated to compete, Cinemark, Rave Cinemas
and Movie Tavern would also have less incentive to maintain,
upgrade and renovate their theaters, to improve those theaters'
amenities and services and to license the most popular movies,"
the Justice Department said in a statement.
Cinemark shares were unchanged in after-hours trading after
falling 0.4 percent on Monday to $30.06.