Dive Brief:
- Simon Property Group, Inc., the largest owner of mall property in the U.S., announced Monday that it has made an unsolicited bid to acquire Macerich Company for $16 billion.
- Macerich, the third largest mall owner in the U.S., would add to Simon's 190 properties with 52 shopping centers and 8 power strip centers.
- Simon took a 3.6% stake in Macerich three months ago, largely seen as premeditated move to this takeover attempt.
Dive Insight:
While some may be lamenting the decline of American malls, Simon is prospering, as shown by this takeover bid and Simon's rise in net operating income last quarter. Simon has been helped along by strong malls and outlets, and the Macerich deal would help it expand even more in some of the fastest growing retail markets in the U.S.
Macerich has yet to respond to requests for comment, and has refused to engage in discussions regarding the deal with Simon.
"Considering the substantial benefits our offer provides, we are confident that, given the opportunity, Macerich's shareholders would accept our proposal," said Simon CEO David Simon in a statement. "In fact, many of our overlapping shareholders have voiced enthusiastic support to us for a potential combination since we publicly announced our stake in Macerich."
