Mall merger: Simon is buying Beverly Center owner Taubman for $3.6 billion

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The mall operators are combining as online shopping continues to devastate brick-and-mortar retail.

Simon Property Group Inc. agreed to buy rival shopping-mall operator Taubman Centers Inc. for about $3.6 billion, a combination that comes as e-commerce continues to roil brick-and-mortar retail.

Taubman, which owns the Beverly Center, saw its shares surge 53.2% to $53.12 on Monday. Simon shares rose 1.4%. Still, Simon was looking for a way to expand and was attracted to Taubman’s portfolio of mall properties in a bid to boost growth, according to Lindsay Dutch, an analyst at Bloomberg Intelligence.The company needs to focus on its U.S. malls, which have been hurt by store closings, and the deal may make room for that, according to Dutch. The purchase makes sense for Simon, given Taubman’s high-quality, well-located malls and Simon’s ability to reinvest in them, she wrote in a report Monday.

 

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Taubman Centers surges as rival Simon buys for $3.6 billion - Business InsiderTaubman shares spiked on the news it will be acquired, reversing a downward trend that had gripped the stock.
Source: BusinessInsider - 🏆 729. / 51 Read more »