UPDATE 1-U.S. approves Regal's purchase of theaters

WASHINGTON, April 29 (Reuters) - Regal Entertainment Group (RGC.N: Quote, Profile, Research, Stock Buzz) must divest movie theaters in three North Carolina cities in order to acquire Consolidated Theatres, the U.S. Justice Department said on Tuesday.

Regal Entertainment, a Tennessee-based movie theater chain, said in January it agreed to buy Consolidated Theatres for about $210 million in cash.

Under the terms of an antitrust settlement announced by the Justice Department, Regal and Consolidated must sell movie theaters in Asheville, Charlotte and Raleigh.

Regal Cinemas owns or runs 540 theaters with more than 6,400 screens in 39 states and the District of Columbia.

Consolidated, a North Carolina partnership, owns or runs 28 theaters with 400 screens in six southern and mid-Atlantic states.

The Justice Department said the sales of some North Carolina theaters was needed to prevent monopolies in those cities.

"If no longer required to compete, Regal and Consolidated would have reduced incentives to maintain, upgrade and renovate their theaters in the relevant markets," the department said in a court filing. (Reporting by Diane Bartz; Editing by Tim Dobbyn/Andre Grenon)