China's Dalian Wanda Group has agreed to buy U.S. cinema chain AMC Entertainment for $2.6 billion, creating the world's largest movie theater chain.

Wanda owns the largest movie theater circuit in China with 86 movie theaters containing 730 screens. AMC owns 347 theaters in the U.S. and Canada with 5,048 screens.

Wanda says it will invest a further $500 million in AMC for future strategic and operating initiatives.