Kansas City, Mo.-based AMC Entertainment Inc. and Loews Cineplex Entertainment Corp. have agreed to sell 10 theaters to clear the way for their proposed merger, the theater operators said Wednesday.

In an agreement with the Justice Department and attorneys general in five states and the District of Columbia, AMC and Loews each will sell five theaters with a combined 120 screens in Chicago, New York City, Boston, San Francisco, Seattle, Dallas and Washington, D.C.