Nine months after the first offer, Simon and Taubman will merge

Al Urbanski
Real Estate Editor & Manager
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Simon will acquire 80% of Taubman Realty Group for approximately $3 billion.

The merger of two of the nation’s biggest mall owners that was announced in February and hit several snags throughout the year is finally a deal.

Simon Property Group and Taubman Centers announced they have reached a definitive agreement to close Simon’s $3 billion cash purchase of Taubman at a modified share price of $43. The original deal was for $3.6 billion at $52.50 a share.

Simon will obtain an 80% ownership interest in Taubman Realty Group and the Taubman family will sell approximately one-third of its ownership interest at the transaction price and remain a 20% partner in TRG.

The boards of Simon and Taubman, including the special committee of independent directors of Taubman, have approved the terms of the transaction. The merger is expected to close in late 2020 or early 2021, subject to Taubman shareholder approval and customary closing conditions. 

Simon and Taubman have settled the lawsuit Taubman filed in June at a Circuit Court in Michigan. After the pandemic hit, Simon stalled on the merger and appeared as if it would walk away. Taubman stated at the time that such a move would cause “irreparable harm” to its shareholders and that Simon knew “full well that there was a pandemic raging in the world” when the original purchase agreement was signed on Feb. 9.