Cineworld, the second-largest theater owner in Europe, has agreed to acquire Regal Entertainment Group, the second-largest theater owner in the United States. Cineworld is offering $3.6 billion in cash, which would be funded with new debt, plus another $2.3 billion in equity raised from existing investors. The deal, pending the approval of Cineworld shareholders, would close in the first quarter of 2018. The new company, Cineworld-Regal, would operate 9,500 screens in ten countries. Motivating consolidation in the industry are market saturation, a slow summer in spite of higher ticket prices, and onerous instructions from studios on how to screen potential blockbusters. Prior to the release of Star Wars: The Last Jedi, the only hits of the season were Wonder Woman, Guardians of the Galaxy Vol. 2, Spider-Man: Homecoming, and It. Regal’s brands include Regal Cinemas, United Artists, and Hollywood Theaters. AMC Entertainment, owned by the Chinese conglomerate Dalian Wanda, will remain the number-one theater owner in both regions.