Chinese company buying AMC theater chain

A Chinese conglomerate announced Monday it will buy a major U.S. cinema chain, AMC Entertainment Holdings, for $2.6 billion in China's biggest corporate takeover in the United States to date.

Dalian Wanda Group Co.'s purchase reflects the global ambitions of a wave of cash-rich Chinese companies that are using acquisitions to speed their expansion by obtaining foreign skills and brand names.

Wanda said the deal will create the world's biggest movie theater operator. The Beijing-based company said it will invest an additional $500 million to fund AMC's development. AMC operates 346 cinemas, mostly in the United States and Canada, and says it has 23 of the 50 highest-grossing U.S. outlets.

"We support AMC becoming bigger, not only in the United States but in the global market," Wanda chairman Wang Jianlin said at a signing ceremony for the acquisition.

The deal reflects rising Chinese investment in U.S. corporate assets despite disputes between the two governments over trade and political issues such as this month's diplomatic standoff over a blind Chinese legal activist. It is the largest-ever takeover of a U.S. company by a Chinese company.

In terms of all Chinese corporate investments in the United States, the deal is the third largest, according to financial research firm Dealogic. It ranks behind investments of $5 billion for a minority stake in Morgan Stanley and $3 billion in Blackstone Group Lp, both in 2007.

AMC's owners include Apollo Global Management, Bain Capital, the Carlyle Group, CCMP Capital Advisors and Spectrum Equity Investors.

AMC has reported losses for the past three years, but its chief executive, Gerry Lopez, said it has returned to profit this year due to strong ticket sales.

There are six AMC theaters in Nassau and Suffolk counties.