Shopping centre owner Hammerson has agreed a £3.4bn takeover of rival Intu, owner of Birmingham’s Bullring shopping centre.
The deal will create the UK’s biggest property company, worth £21bn.
Intu also owns the Lakeside shopping centre in Essex and the Trafford Centre in Manchester, while Hammerson owns Bicester Village designer outlet and Brent Cross shopping centre.
The combined group plans to target fast growing markets in Spain and Ireland.
John Strachan, chairman of Intu, said: “Intu offers high-quality retail and leisure destinations in the UK and Spain, which, when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities.”
Hammerson chairman David Tyler said: “This transaction will deliver real value for shareholders. The financial strength of the enlarged group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale.”
Hammerson shareholders will own 55% of the combined firm and Intu investors the rest. Shareholders will vote on the deal next year.
Source by BBC