A £3.4 billion takeover of British shopping centre operator Intu Properties by bigger rival Hammerson has been formally scrapped after Hammerson was freed from its obligation to hold a shareholder vote on the deal.
Will a day go by this month when Hammerson isn't in the news? Perhaps not. The big story today is that the proposed mega-merger between the shopping centres giant and its smaller peer isn't going to happen.
The £3.4 billion acquisition of Intu by Hammerson might never happen, despite the French company that could have derailed the deal walking away from another bid for the larger of the two UK shopping centre giants.
It may not have been good news for the Hammerson share price, but news on Friday that French retail property giant Klépierre is walking away from making another bid probably came as some relief to the Hammerson board.
“Thanks, but no thanks”. That’s the message shopping malls giant Hammerson delivered to Europe-based suitor/predator Klépierre on Wednesday morning after receiving an updated buyout proposal from the French firm.
A "flight to quality" is buoying Hammerson, despite the overall weak retail market, as its premium malls in the UK and France prove themselves able to attract both shoppers and brands while rivals flounder.
While UK shopping mall giants Hammerson and Intu are accelerating towards their planned merger, the plans could be impacted by the arrival of Klepierre, with reports emerging that it made a bid for Hammerson this month.
After opening its first French boutique in Orléans last October, the L’Oréal makeup brand is set to open the doors to its second location in the country at the Belle Epine shopping centre on the 28th January.