Anti-trust concerns by Canada's Competition Bureau has forced the sale of exhibitor Famous Players' minority stake in regional cinema circuit Galaxy Entertainment.

Viacom's Canadian exhibition subsidiary Famous Players actually sold its stake in Galaxy Entertainment three weeks ago, appeasing monopoly concerns raised by the Competition Bureau. The public confirmation, however, was made yesterday.

The concerns were prompted by Onex Corp's March 21 takeover of Loews Cineplex, the group which operates Canada's second largest circuit, Cineplex Odeon. Toronto-based Onex is also the majority owner of Galaxy, which meant in effect that Canada's two leading cinema chains - Famous Players and Cineplex Odeon - were tangentially linked through a third circuit.

Addressing concerns of market domination, the Bureau concluded that, in severing the connection between Galaxy and Famous Players, Onex's control of both Cineplex Odeon and Galaxy would not lessen market competition.

Onex owns more than 75% of Galaxy and Alliance Atlantis Communications owns approximately 12%; Galaxy management, which repurchased Famous Players' 7.5% stake, now holds the balance.

Galaxy Entertainment spokesman Ken Prue told ScreenDaily that the change will have no material effect on Galaxy's expansion plans. "We weren't reliant [on Famous] for capital. It was more of transfer of technological skill, we learned a lot from them." Famous recently completed a $444.5m (C$700m) expansion and renovation of its facilities. Prue said Galaxy expects to have 136 screens in operation by the end of 2002.

In a statement, Robert Lancop, Assistant Deputy Commissioner of Competition for the Bureau said, "In the course of reviewing the proposed restructuring of Loews Cineplex, we learned of a previous merger between Galaxy Entertainment and Famous Players that limited competition."

In complying with the Bureau's ruling, Famous Players also ended its representation on Galaxy's board and terminated all ancillary agreements.