South Korea’s cinema chains Lotte Cinema and Megabox call off their proposed merger, according to disclosures by both sides. Lotte Shopping, the operator of Lotte Cinema, states in a corporate filing that the memorandum of understanding with Megabox’s parent company, Contentree JoongAng, is terminated. The MOU, which was signed in May the previous year, is reported to end as of June 30. Variety reports that the deal collapses after about 14 months of negotiations and that it is linked to a worsening financial situation at JoongAng Group, the parent group behind Contentree JoongAng. Both outlets describe the termination as an official end to the merger process rather than a continuation or restructuring. The proposed combination was aimed at creating the country’s largest theatrical exhibitor, but the companies do not indicate an alternative transaction in the reporting. The cancellations leave the two chains operating independently going forward.