Cineworld Group PLC (LON:CINE) said the acquisition of Cineplex will not go ahead due to “certain breaches” by the Canadian rival.
The FTSE 250-listed firm agreed in December a US$2.1bn takeover of Cineplex Inc, owner of 1,695 screens, which would have made the UK group North America’s largest operator.
READ: What lies ahead for movie business as lockdown is lifted? Will it be curtains for Cineworld?
However, late on Friday Cineworld said “a material adverse effect has occurred with respect to Cineplex” while the latter was unwilling “to cure the breaches”, so it called off the agreement.
Cineplex said it intends to start legal action and seek damages against the decision, adding Cineworld’s allegations are “buyer’s remorse" in light of the pandemic.
No details on the alleged breaches or material adverse effect were provided.
Shares dipped 2% to 75.28p on Monday morning.
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