Published on : May 25, 2018
The e-commerce and retail sector has been witnessing several strategic takeovers and mega-merger deals sweeping across the globe in recent times. In developed nations, the moves are motivated by the urge to counter the rapid inroads being made by e-commerce behemoths with the likes of Amazon and Walmart. With the competition heating up, shareholders of the companies engaged in deals are increasingly geared toward upholding the moves. In such a recent development, the shareholders of an Australian retail company Westfield Group, which run malls across the U.S., have finally conceded to give a go-ahead to a prominent European real estate company Unibail-Rodamco SE, as announced on May 24, 2018.
Deal likely to a Snag for Inroads made by Global Retail Giants
The shareholders of the one of the largest European property firms has already voted in favor of the deal after it was announced in December last year. Furthermore, the deal was approved by Australia's Foreign Investment Review Board. The deal was motivated by the aim of creating a retail giant which can pose tough competition to stalwarts such as Amazon in the regional retail industry.
Malls the Fulcrum of Attention
When the deal was announced in December, the shares of Unibail-Rodamco slipped downward a bit reducing the value of the deal, a combination of stock and cash. Still it went favorably as it added to value to Australia-listed Westfield shares. The Australian shopping center believed that consolidating spending on malls will attract more customers and to this end it has been shifting toward adding more residential and entertainment properties to its portfolio. The recent move will keep the focus on malls intact.
The value of the combined entity is pegged at over US$70 billion and will include malls in New York and Log Angeles. The co-CEO of the Australian shopping center reinforced the deal with Unibail and opined that the combined company will keep malls the cynosure of attention for shoppers as before.