Hammerson is set to take over rival shopping centre owner intu, in a deal which will create a “£21bn pan-European portfolio of high-quality retail and leisure destinations”.
The proposed £3.4bn takeover will result in intu assuming the Hammerson brand and the enlarged group would be run by Hammerson’s chief executive David Atkins, while CFO Timon Drakesmith, would continue in his role. John Strachan, chairman of intu, would become a senior independent director of the new Hammerson.
“This marks an exciting milestone in the history of Hammerson. Bringing together the high-quality portfolios of both companies establishes Hammerson as a larger, leading European retail REIT, enhances shareholder returns and supports opportunities for long-term growth,” said Atkins.
“The acquisition creates a leading pan-European platform of desirable retail and leisure destinations which are better positioned to serve the needs of our retailers, excite our customers and support our partners and communities. I hold intu’s high-quality centres in high regard and I look forward to working with a strengthened team to enhance the performance of our entire portfolio,” he said.
Intu operates some of the UK’s best known malls including Lakeside in Essex, Metrocentre Gateshead and the Trafford Centre in Manchester while Hammerson controls some flagship destinations such as Bullring, Birmingham, Brent Cross in London and Cabot Circus in Bristol.