The owner London’s Westfield shopping centres is being taken over by French property investment giant Unibail-Rodamco, in a deal valuing the former at $24.7bn (£18.5bn), making it the largest acquisition of an Australian company in history.
In joint press release on Tuesday, the two companies said that the transaction had already been unanimously recommended by Westfield’s board of directors as well as by Unibail-Rodamco’s supervisory board.
They said that the tie-up would create a global property leader with €61.1bn (£53.9bn) of market value, operating in 27 of the world’s top retail markets and cities.
“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 chief executive officer of Unibail-Rodamco.
“It adds a number of new attractive retail markets in London and the wealthiest catchment areas in the United States. It provides a unique platform of superior quality shopping destinations supported by experienced professionals of both Unibail-Rodamco and Westfield,” he said.
Sir Frank Lowy, chairman of Westfield’s board of directors, said that Unibail-Rodamco’s track record “makes it the natural home for the legacy of Westfield’s brand and business”.
Under the terms of the deal, Unibail-Rodamco said shareholders in Westfield will receive a combination of cash and shares, valuing Westfield at $7.55 a share, which represent an 18 per cent premium to the company's closing share price before the deal was announced.
Owners of shopping centres around the world have been struggling to keep up with growing demand for online shopping, championed by behemoths like Amazon.
In the US, department store operators have already been forced to aggressively restructure amid a slump in demand for physical shopping, a trend that is starting to materialise in the UK too.
Westfield currently owns and operates 35 shopping centres across the UK and the US, valued at around $32bn. It’s working on a massive expansion at its flagship mall in London.
Additional reporting by newswires
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