Unibail-Rodamco has agreed to buy Westfield in a deal that will see two of the world’s best-known shopping centre owners come together to create a £54.1bn portfolio.
In the UK, Westfield’s existing centres are Westfield London in White City and Westfield Stratford, in which it owns a 50% share of each, as well as The Broadway in Bradford.
The deal represents a dramatic entry into the UK and US markets for Dutch/French firm Unibail-Rodamco, which has long looked to expand its horizons beyond continental Europe.
Sir Frank Lowy, the founder of Westfield, and the Lowy family will exit the company, having given their support to the deal. The Westfield brand will remain, however, and there will be a “progressive roll-out of the world-famous brand in the group’s flagship shopping destinations”.
The deal, which is the largest takeover of an Australian company, has been struck at A$10.01 (£5.66) per share or a 17.8% premium to yesterday’s closing price, and values the company at £18.5bn.
The combined group will own 104 assets across 27 cities. It will have the world’s largest development pipeline of €12.3bn (£10.86bn) and employ 3,700 staff.
This pipeline includes Westfield’s 50% share in the Whitgift Centre in Croydon, which has seen a dramatic change of ownership over the past week with joint venture partner Hammerson having merged with Intu.
Unibail chief executive Christophe Cuvillier will remain in post with former JLL chief executive Colin Dyer appointed chairman.
Cuvillier said: “All of us at Unibail-Rodamco have immense respect for what the Lowy family and the Westfield team have accomplished with the Westfield brand and the company’s iconic collection of world-class shopping destinations. The acquisition of Westfield is a natural extension of Unibail-Rodamco’s strategy of concentration, differentiation and innovation.
“The deal 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 from both Unibail-Rodamco and Westfield. We believe that this transaction represents a compelling opportunity for both companies to realiae benefits not available to each company on a standalone basis, and creates a strong and attractive platform for future growth.”
Lowy said: “The transaction announced today is the culmination of the strategic journey Westfield has been on since its 2014 restructure. Unibail-Rodamco’s track record makes it the natural home for the legacy of Westfield’s brand and business. We look forward to seeing Westfield continue to grow as part of the world’s premier owner of flagship shopping destinations.”
Deutsche Bank and Goldman Sachs are acting as financial advisers to Unibai. Rothschild is acting as lead adviser for Westfield with Jefferies and UBS as joint financial advisers.
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