Knoxville-based Regal Entertainment Group has announced its definitive merger agreement with Cineworld Group. Cineworld is the United Kingdom’s largest cinema operator. The company will acquire Regal which is one of the largest theater companies in the United States.

“We are excited to have reached an agreement with Cineworld, at a price that represents a meaningful premium on Regal’s unaffected share price for our shareholders. Since becoming a public company, Regal has focused on delivering superior shareholder value, including return of capital in the form of regular and special dividends,” said Amy Miles, CEO of Regal Entertainment Group. “We believe the transaction announced today provides compelling value for our stockholders.”

Regal stockholders will receive $23 in cash for each Class A share and Class B common stock. The total transaction value is $5.9 billion.

“We believe this partnership with Cineworld will enhance Regal’s ability to deliver a premium movie-going experience for customers and further build upon our strategy of introducing innovative concepts and premium amenities designed to enhance the value of our theatre assets. The combination of our two great companies, Cineworld’s tremendous success in the UK, as well as other markets they have entered since, and Cineworld’s commitment to maintain a strong presence in the US and Knoxville, provide a global platform positioned for continued growth and innovation,” Miles concluded.

The agreement was unanimously approved by Regal’s and Cineworld’s boards.