Simon Set to Save $800M as it Reaches Merger Deal with Taubman at Reduced Price
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Construction Business Review | Monday, January 25, 2021
Simon Property Group, Inc. and real estate investment trust Taubman Centers, Inc. have agreed to follow through on their merger deal at a revised price. Simon Group will pay $43 per share to acquire an 80% stake in Taubman Realty Limited Partnership. The original deal terms were for a purchase consideration of $3.6 billion at $3.6 billion at $52.50 per share.
The Taubman family will continue to hold a 20% contrary interest in the realty partnership company.
Although the Simon-Taubman deal is more real-estate centric, there have been instances of revised merger terms due to a dip in the retail business. Simon Group stands to save $800 million in the deal. The amended acquisition agreement makes the end of a legal dispute in Michigan between the two companies.
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