Simon Acquires Michigan-based Mall Group in $3.6B Deal

Simon recently opened outlets in South Korea and France.

Indianapolis-based Simon Property Group Inc. (NYSE: SPG) has acquired a controlling interest in Taubman Centers Inc. (NYSE: TCO), a retail mall group headquartered in Michigan, in a cash deal valued at $3.6 billion.

The two companies jointly announced the transaction that will give Simon an 80% ownership interest. Simon will acquire Taubman common stock for $52.50 per share in cash. The Taubman family will remain a 20% partner in the Taubman Realty Group Limited Partnership.

Taubman owns 26 shopping centers in the U.S. and Asia, located in larger markets.

The transaction has been approved by the boards of directors of both companies.

Simon Property Group Chief Executive Officer David Simon says the Taubman properties will continue to be managed under its current executive team, including CEO Robert Taubman.

“Over the last few years, David and I have developed an excellent personal relationship and importantly, Simon shares our commitment to serving retailers, shoppers and the communities in which we operate.  The Board and I are confident that Simon is the ideal partner to help us build on our progress,” said Taubman.

Simon also last week issued its year-end and quarterly financial reports. The company says Funds from Operations was $4.2 billion for the year, compared to $4.3 billion the previous year.

The retail group also reported fourth-quarter FFO of $1.0 billion, compared to $1.1 billion during the same period a year ago.

To view the financial report, click here.