The German exhibition landscape is set to undergo radical and far-reaching changes if Germany's two biggest cinema operators - CinemaxX and UFA - decide to embark on a proposed strategic alliance after conducting "a speedy analysis" of their individual operations.

The two companies, who between them run over 670 screens at more than 130 sites, revealed that they would "consider all theatre locations and all perspectives of a future cooperation".

The focus of the review will be the analysis and quantification of positive effects resulting from a cooperation of the two companies.

This turn of events follows the recent view from CinemaxX chief Hans-Joachim Flebbe that stagnation in the multiplex sector meant it would only be a question of time before the first takeovers and mergers kicked in.

"Discussions are already being held among the market leaders. Everybody is talking to one another. That will lead to further changes", he predicted.