Europe-based property management company Unibail-Rodamco has entered into an agreement to acquire U.S. mall operator Westfield. The deal, according to a Reuters report, is valued at $16 billion.
According to a press release from the two companies, the deal when finalized would create an organization with a portfolio of 104 assets across 13 countries that have more than 1.2 billion visits annually in cities such as London, New York, Los Angeles, Paris, Munich and Madrid, among others.
“The acquisition of Westfield is a natural extension of Unibail-Rodamco’s strategy of concentration, differentiation and innovation,” said Christophe Cuvillier, chairman of the management board and CEO of Unibail-Rodamco. “It adds a number of new attractive retail markets in London and the wealthiest catchment areas in the United States.”
Sir Frank Lowy AC, chairman of the Westfield board of directors, said the deal with Unibail-Rodamco is the culmination of the strategic journey Westfield has been on since its 2014 restructuring.
Under the terms of the agreement, Westfield security holders will receive a combination of cash and shares in Unibail-Rodamco, valuing each Westfield security at a price of $7.55 and representing a premium of 17.8% to Westfield’s closing security price on December 11, 2017.
According to the companies, the transaction is subject to customary conditions that include the receipt of certain regulatory approvals, the approval of Unibail-Rodamco’s shareholders and Westfield’s security holders, Australian court approval for the proposal, and admission of the Unibail-Rodamco stapled security to trading on Euronext and the ASX.