Unibail-Rodamco to acquire Westfield in 24.7 billion dollar deal

Shopping centre giant Westfield, which has two centres in London, is being acquired by Paris-based Unibail-Rodamco to create the “world’s premier developer and operator of flagship shopping destinations” in a 24.7 billion dollar deal.

The deal, which has been unanimously recommended by Westfield’s board of directors and Unibail-Rodamco’s supervisory board, will see the creation of a global property leader worth 72.2 billion dollars, strategically positioning its combined shopping centres in 27 of the world’s most attractive retail markets and cities including in the UK, Australia, France, Spain and the United States.

France’s Unibail will pay shareholders in Australia’s Westfield Corporation, which owns 35 shopping centres in the United States, including in New York and Los Angeles, and in the UK at London’s White City and Stratford, 7.55 cents a share at a 17.8 percent premium.

Unibail chief executive and chairman of the management board, Christophe Cuvillier said: “The acquisition of Westfield is a natural extension of Unibail-Rodamco’s strategy of concentration, differentiation and innovation.

“It 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 of both Unibail-Rodamco and Westfield.”

In a statement, Unibail-Rodamco stated that the acquisition is expected to result in 100 million dollars in cost savings per year across the 104-strong property group, while adding that they are still committed to the “progressive roll-out of the world famous Westfield brand in the Group’s flagship shopping destinations”.

It also notes that the deal will see the creation of a collection of 56 high quality flagship shopping destinations, representing 84 percent of the GMV, with an average footfall of 15.7 million per annum, such as Westfield London, Westfield Stratford City, Les Quatre Temps, Westfield Century City, Le Forum des Halles, Westfield World Trade Center, La Maquinista, Shopping City Süd, Mall of Scandinavia, Centrum Chodov and Arkadia.