By Mary Ellen Podmolik
| Two Kerasotes movie theater complexes within Chicago will reopen at 6
p.m. Tuesday as Regal Entertainment Group theaters, under an agreement
that allows Regal to gain a foothold within the city of Chicago.
Knoxville, Tenn.-based Regal announced Monday that it would acquire nine
theaters from AMC Entertainment Holdings Inc. in Illinois, Indiana and
Colorado, in exchange for cash and two Regal theaters. While the company
is staying mum on several of the locations, two of the complexes are
the Kerasotes’ Chicago City North 14 and Webster Place 11 locations in
Chicago, a spokesman said.
Regal’s acquisition helps enable AMC Entertainment Group Inc. to acquire most of the theaters run by Chicago-based Kerasotes Showplace Theatres.
On Friday, the U.S. Department of Justice’s antitrust division filed both a lawsuit in U.S. District Court in Washington to block AMC’s proposed $275 million acquisition of Kerasotes and a proposed settlement to resolve the lawsuit and address concerns that the acquisition would lessen competition and raise ticket prices among first-run movie theaters in the Chicago, Denver and Indianapolis areas.
As part of that settlement, AMC must divest AMC Gardens 13 in Skokie; Kerasotes Glen 10 in Glenview; AMC Cantera 30 in Warrenville; and Kerasotes Showplace 12 in Bolingbrook.
If the transaction with Chicago-based Kerasotes is approved, AMC must inform the Justice Department if it seeks to buy another movie theater in Chicago, Denver or Indianapolis in the next 10 years.
Regal said the acquisition, which would aid earnings, will close in its fiscal second quarter. Regal currently operates theater complexes in Crystal Lake, Lake Zurich, Lincolnshire and Round Lake Beach.