AMC Entertainment Holding Inc.’s proposed $1.2 billion buyout of Carmike Cinemas Inc. was approved Tuesday by the Department of Justice’s antitrust division, with certain conditions. AMC will have to sell off theaters in 15 local markets, sell most of its holdings and give up governance rights in cinema media company National CineMedia LLC and transfer 24 theaters to the network of Screenvision LLC to close the deal. “Moviegoers across the United States have benefitted from head-to-head competition between AMC and Carmike that has kept ticket prices in check and delivered a higher quality movie experience,” said Acting Assistant Attorney General Renata Hesse of the DOJ’s antitrust division. “Today’s settlement will ensure that movie theatre competition is preserved in 15 local markets where AMC and Carmike currently compete.” AMC’s stock rose 0.9% while Carmike shares eased 0.3%. Year to date, shares of AMC have rallied 39% and of Carmike have soared 45%, while the S&P 500 has gained 11%.
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