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Westfield shopping centres bought in $25bn deal | Westfield shopping centres bought in $25bn deal |
(35 minutes later) | |
The owner of Westfield shopping centres is being bought for $24.7bn (£18.5bn) in a deal which will see the malls launched in new markets. | The owner of Westfield shopping centres is being bought for $24.7bn (£18.5bn) in a deal which will see the malls launched in new markets. |
French property group Unibail-Rodamco is offering $7.55 a share for the Australian business. | French property group Unibail-Rodamco is offering $7.55 a share for the Australian business. |
Westfield Corporation has 35 shopping centres in the UK and the US while Unibail-Rodamco has 71 sites in Europe. | Westfield Corporation has 35 shopping centres in the UK and the US while Unibail-Rodamco has 71 sites in Europe. |
Unibail-Rodamco said the takeover would result in a "progressive roll-out of the world famous Westfield brand". | Unibail-Rodamco said the takeover would result in a "progressive roll-out of the world famous Westfield brand". |
The takeover is the second major deal involving shopping centre owners to emerge in just over a week. | The takeover is the second major deal involving shopping centre owners to emerge in just over a week. |
On 6 December, Hammerson, which owns the Bullring in Birmingham, announced a £3.4bn bid for Intu, whose properties include the Arndale shopping centre in Manchester. | On 6 December, Hammerson, which owns the Bullring in Birmingham, announced a £3.4bn bid for Intu, whose properties include the Arndale shopping centre in Manchester. |
In a joint statement, Unibail and Westfield said they would make €100m (£88.2m) in savings a year despite no overlap between where the companies' shopping centres are based. | |
Christophe Cuvillier, chief executive of Unibail-Rodamco, said the acquisition of Westfield "adds a number of new attractive retail markets in London and the wealthiest catchment areas in the United States". | Christophe Cuvillier, chief executive of Unibail-Rodamco, said the acquisition of Westfield "adds a number of new attractive retail markets in London and the wealthiest catchment areas in the United States". |
Mr Cuvillier said it will cut the cost of advertising and marketing. At the moment, Unibail shopping centres advertise individually under different brands for big events, such Christmas. | |
He said that by using the recognisable Westfield brand, which it intends to roll-out across its flagship shopping centres in areas such as Paris, Barcelona, Vienna and Warsaw, it will reduce advertising spend. | |
It will also save costs at the corporate level because the board of Westfield is stepping down and leaving the combined group. | |
The group expected to sell €3bn (£2.65bn) worth of assets over the next few years, which will involving divesting of some smaller shopping centres. | |
Sir Frank Lowy, the billionaire property tycoon who co-founded Westfield in the 1950s, will retire as chairman of Westfield. His sons Peter and Steven will also step down as co-chief executives of the business. | Sir Frank Lowy, the billionaire property tycoon who co-founded Westfield in the 1950s, will retire as chairman of Westfield. His sons Peter and Steven will also step down as co-chief executives of the business. |
However, following completion of the deal, Peter Lowy will be appointed to the combined group's supervisory board and Sir Frank will chair a newly created advisory board. | However, following completion of the deal, Peter Lowy will be appointed to the combined group's supervisory board and Sir Frank will chair a newly created advisory board. |
They also said: "The Lowy family is committed to the success of the Group and intends to maintain a substantial investment in the group." | They also said: "The Lowy family is committed to the success of the Group and intends to maintain a substantial investment in the group." |
Sir Frank is one of the richest people in Australia with a fortune of $5.9bn, according to Forbes magazine and was knighted by the Queen last week. | Sir Frank is one of the richest people in Australia with a fortune of $5.9bn, according to Forbes magazine and was knighted by the Queen last week. |
Sir Frank originates from Eastern Europe and survived the Holocaust in Hungary. He moved to Australia in 1952. | Sir Frank originates from Eastern Europe and survived the Holocaust in Hungary. He moved to Australia in 1952. |