LOS ANGELES – AMC Entertainment has won approval from the U.S. Department of Justice to buy Carmike Cinemas, which owns the Sauk Valley 8 Theater in Sterling.

The $1.2 billion deal will clear the way for an acquisition that will create the biggest U.S. movie theater chain.

But AMC will have to sell off some theaters and other holdings in order to satisfy regulators.

In a proposed settlement filed Tuesday, AMC agreed to divest theaters in 15 geographical areas where its circuit overlaps with Carmike’s.

AMC will get to choose which theaters it unloads during the 60 days after the deal closes, Chief Executive Adam Aron said in a conference call with investors and analysts. The company expects to sell 15 to 20 theaters, mostly from the Carmike chain, including two Starplex locations.

“Moviegoers across the United States have benefitted from head-to-head competition between AMC and Carmike that has kept ticket prices in check,” Acting Assistant Attorney General Renata Hesse said in a statement, adding that the agreement with the DOJ “will ensure that movie theater competition is preserved in 15 local markets where AMC and Carmike currently compete.”

Carmike and AMC are direct competitors in markets in Montgomery, Alabama; Destin and Miramar Beach, Florida.; and Cumming, Georgia, the Justice Department said.

Approval from the Justice Department represents the final regulatory hurdle for AMC, which is owned by Chinese real estate and entertainment giant Dalian Wanda Group.