Simon Property Group makes bid for Macerich in potential multi-billion dollar deal

If you live in America there is a very high chance that you have been inside of a Simon Mall whether you even knew it or not, because they are wide and varied across the entire U.S. Well, Simon Malls is about to become even more wide and varied across the U.S. if their bid to acquire The Macerich Company goes through. As Simon Property Group attempts to solidify their position as the largest mall owner in America they have made a bid to acquire The Macerich Company for 91 dollars per share and Simon shares.

The cost of the proposed transaction could come in at a staggering 22.4 billion dollars, which will also include the assumption of Macerich’s 6.4 billion dollars of debt. While some might question why Simon Property Group would want to acquire a company with debt, when you are poised to be the nations largest mall owner you realize that debt is just a mere formality. If the acquisition of Macerich were to go through Macerich shareholders would receive consideration in the form of 50 percent cash and 50 percent Simon common stock utilizing a fixed exchange ratio.

According to Women’s Wear Daily, The offer represents a 30 percent premium over Macerich’s closing stock price of 69 dollars and 88 cents on November 18th, 2014, the day before Simon disclosed its 3.6 percent investment in the company, which is equivalent to 5.71 million shares. Simon would not be the only benefitting from this transaction, however. Simon has agreed to sell selected Macerich assets to General Growth Properties Inc. in relation with the closing of the acquisition. However, neither transaction financing nor the sale of assets to General Growth will be a stipulation to closing the potential transaction. If this acquisition goes through it will sure be good to be connected to Simon Property Group because they will be one of the largest retail real estate forces in America.