Mall Giant Simon Completes Acquisition of Rival Taubman After Price Cut
By Nicholas Rizzi December 30, 2020 10:48 am
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Mall giant Simon Property Group completed its acquisition of rival Taubman Centers at a nearly $800 million discount after trying to back out of the deal because of the coronavirus pandemic, the company announced Tuesday.
Simon paid $43 per share for an 80 percent stake in Taubman, a discount from the $52.50 per share it agreed to pay for the mall owner in February.
“We are very pleased to complete this transaction and to add some of the world’s premier retail assets to our portfolio,” David Simon, president and CEO of Simon, said in a statement. “This investment will enhance the ability of [Taubman] to establish innovative retail environments for consumers and to create new job prospects for the communities in which it operates.”
Simon — which unsuccessfully tried to buy Taubman in 2003 — agreed to buy a majority stake in Taubman for $3.6 billion in February, giving it control of even more of the country’s top malls. The Taubman family will retain a 20 percent stake.
However, the Indianapolis-based Simon tried to scrap the deal in June, citing fallout from the pandemic, which decimated the retail sector.
Taubman shot back with a lawsuit against Simon claiming its reason for killing the deal was “without merit.” The pair agreed to revised terms for the acquisition in November and settled the litigation days before the trial was set to start.
