PARIS – French real estate company Unibail-Rodamco has agreed to buy Australia-based shopping mall operator Westfield Corporation for $15.7 billion in cash and shares.
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The companies would together have 104 shopping centers in 13 countries that bring in an estimated 1.2 billion visits a year.
Unibail-Rodamco invests globally in commercial property, from malls to office space. Westfield, which started off in Sydney in the 1950s, is known for its 35 upscale shopping centers in major metropolitan areas, particularly in the U.S. and Britain.
Unibail-Rodamco SE said Tuesday that its offer values Westfield shares at $7.55 each, a premium of 17.8 percent on Monday’s closing price. Based on the number of outstanding shares, that values the takeover at $15.7 billion.
Frank Lowy, Westfield’s chairman, said “the transaction announced today is the culmination of the strategic journey Westfield has been on since its 2014 restructure.”
In the new company, Lowy would chair an advisory board while the CEO of Unibail-Rodamco, Christophe Cuvillier, would retain that role.
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The deal was recommended by the boards of both companies but is subject to approval by shareholders and regulators.
