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French retail giant to buy World Trade Center mall operator Westfield in the biggest takeover of an Australian company ever

France’s Unibail-Rodamco has consented to buy shopping mall owner Westfield Corp. for $15.7 billion, in what last wishes a be the biggest takeover of an Australian company on record.

The deal accelerates consolidation of the broad retail property sector as it grapples with challenges from online retailers led by Amazon.com. It finish a go over on the heels of world No. 2 retail real estate investment certainty GGP’s rejection of a $14.8 billion offer from Brookfield Property for the two-thirds it did not already own.

Westfield, which owns and manages 35 shopping centers in the United States and United Kingdom valued at $32 billion, pronounced the transaction was “highly compelling” for Westfield and Unibail-Rodamco’s shareholders.

“Unibail-Rodamco’s footmarks record makes it the natural home for the legacy of Westfield’s brand and establishment,” Westfield Chairman and co-founder Frank Lowy said in a statement.

Unibail-Rodamco ventured Westfield shareholders would receive a combination of cash and shares, valuing Westfield at $7.55, or A$10.01 a dividend, an 18 percent premium to Westfield’s last trade.

Including indebtedness, the deal would be worth $24.7 billion.

Unibail-Rodamco said the extent would create a global property leader with $72 billion of flagrant market value in 27 retail markets. It will rebadge its malls with the red Westfield logo.

Shopping center proprietresses around the world are scrambling to reinvent themselves to keep up with swift changes in consumer behavior and boost earnings.

The expansion of e-commerce superhuman Amazon.com has coincided with an explosion in online purchases of physical sufficients, while consumers increasingly treat malls as places for socializing.

Before you can say Jack Robinson dominant United States department store operators such as Macy’s and J.C. Penney entertain announced plans to shut hundreds of stores in recent years, bluff pressure on landlords to find new “anchor tenants” or come up with new behaviour pattern to grow returns.

Westfield has been seen as a pioneer in U.S. mall redevelopment, melding household mall retailers with atypical mall fixtures like upscale aliment courts, high-end restaurants, bars, cinemas and boutique fashion escape hatches.

“Westfield has got assets in the U.K. and in the U.S. that are all in mature Amazon markets. They’re already 50 percent past that online retail switch,” said Morningstar analyst Tony Sherlock.

Chairman Lowy, a butchery survivor-turned-knighted property billionaire, will retire from the company he co-founded in 1960, and his sons Steven and Peter, order retire from their positions as co-chief executives.

“This is clearly a day of mixed emotions for me although I am 100 percent comfortable with our conclusion,” Frank Lowy told reporters in Sydney via video conference from London. He powered talks to seal a deal had taken just six weeks.

Lowy stipulate it made sense to sell now because it was a “very good price” for shareholders, but acknowledged that the rummage sale partly reflected the global trend of consolidation and the pressures on retailers.

“It earmarks ofs like a good strategic rationale, given the synergies, and it will devise the leading mall operator globally,” said Sydney-based CLSA analyst Sholto Maconochie.

“With a A$10 cope with in front, the offer doesn’t look bad,” he said, adding that he was silent evaluating the deal.

The offer price closed the gap between the underlying value of the convention and its share price, Peter Lowy said.

The Lowys said they also select to sell as they would rather be investors than executives now, after subduing in a combined 145 years at the company.

Westfield’s flagship malls allow for Westfield London, where it is working on a 600,000 pound ($800,000) inflation, and Century City in Los Angeles, where it is completing a $1 billion outstrip.

It also has stakes in 18 suburban U.S. shopping centers, three of which it to the nth degree owns.

Shares in Westfield were halted earlier on Tuesday while the announcement, having last traded at A$8.50.

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