8th Oct 2013 08:31
LONDON (Alliance News) - Cinema chain, Cineworld Group PLC, Tuesday said that it will dispose of its local Picturehouse cinemas in Aberdeen, Cambridge and Bury St Edmunds, after being told by the UK competition regulator, that is has to sell three of its cinemas.
Cineworld recently acquired City Screen Limited, which runs the Picturehouse chain, however competition watchdog Competition Commission, said that Cineworld and Picturehouse face limited competition in three particular areas - Aberdeen, Bury St Edmunds and Cambridge - which could mean higher prices for local cinema goers.
As a result, Cineworld has been told it has to sell one cinema in each of these areas, to an operator approved by the Competition Commission.
"The sale of one of the cinemas in Aberdeen, Bury St Edmunds and Cambridge to a competing cinema operator will restore competition in these areas and protect customers' interests," said CC Deputy Chairman Alasdair Smith in a statement.
In response to the Competition Commission, Cineworld said that it has looked at a range of financial and strategic considerations, and will dispose of the local Picturehouse cinema in both Aberdeen and Bury St Edmunds. It said that in Cambridge however, it is still evaluating its options whether to sell its local Picturehouse or Cineworld cinema.
"We are very disappointed by the Competition Commission's final decision to sell three of our cinemas. We will be selling these cinemas as going concerns and will be supporting our affected cinema teams through the sale. In the meantime, Cineworld Group continues to invest in and grow both Picturehouse and Cineworld estates," said Chief Executive Officer, Stephen Wiener. in a responding statement.
Cineworld shares were trading 0.03% high Tuesday morning, at 369.62 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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