AMC Entertainment, owned by China's richest man Wang Jianlin, won US regulatory approval on Tuesday for its proposed takeover of rival Carmike Cinemas for $1.12 billion after agreeing to sell off some of its theaters and other holdings.

AMC Entertainment needs to sell 24 theaters in 15 geographical areas to avoid creating monopoly and to be given approval by the Justice Department. In its court filing, the Justice Department said AMC will sell some of its theaters in nine states including Alabama, Florida, Georgia, Illinois, Minnesota, New Jersey, Oklahoma, Pennsylvania, and Wisconsin, according to Tri-City Herald.

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The Leawood, Kansas-based AMC will be allowed to choose which theaters it will dispose during the 60 days after the deal closes, CEO Adam Aron said during a conference call with investors and analysts as cited by the LA Times. This means that the deal is expected to close, at its earliest, on February 2017.

"Moviegoers across the United States have benefitted from head-to-head competition between AMC and Carmike that has kept ticket prices in check," Renata Hesse, acting attorney general, said, adding that the agreement will preserve the competition between the two movie houses.

Aside from offloading several cinemas, the Justice Department also required AMC to reduce its stake in cinema advertising firm National Cinemedia to prevent excessive competition in the movie advertising business, Channel News Asia reported.

AMC described the Justice Department's approval as "the final regulatory hurdle" to close the transaction. The agreement, however, still needs court approval.

Meanwhile, AMC is set to pay $33.06 per share for Carmike. Once the deal closes, AMC will become the biggest cinema theater in the US with more than 600 theaters, surpassing Regal's 565 locations.

"We are confident that the growth potential of AMC is enhanced by joining forces with Carmike Cinemas," Aron said. 

TagsAMC Entertainment Holdings Inc, Carmike Cinemas, AMC theaters Carmike, Carmike cinemas takeover