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Alice Hancock JUNE 12 2020 11 Print this page Cineworld, the world’s second-largest cinema chain, called off a $2.3bn deal to buy the Canadian cinema company Cineplex on Friday saying that Cineplex had suffered a “material adverse effect”, which meant the acquisition could not go ahead. Under the terms of the deal, the sale would not proceed if Cineplex breached a level of $725m debt. When it last reported figures in February, Cineplex had net debt of $625m. Cineplex claimed that it had not breached the sale agreement and “that a material adverse effect has not occurred”. The smaller cinema chain also claimed that Cineworld had not complied with the requirements needed in order for the deal to receive approval from the Canadian competition authorities. The deal had been due to complete at the end of June.
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