WASHINGTON Cinemark Holdings Inc (CNK.N), 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's founder.
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 million.
"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.
(Reporting by David Ingram and Diane Bartz; Editing by Gary Hill and David Gregorio)