Shopping mall giant Westfield Corp ruled out trying to increase a $16 billion buyout from France’s Unibail-Rodamco SE after a decline in the European firm’s shares drove down the deal’s value, saying there was no Plan B.
Online shopping has its limits and physical stores will never go out of fashion, says the CEO of Unibail-Rodamco which is betting $16 billion (£12 billion) on buying Westfield to create a global mall giant.
Shares of Australian shopping mall giant Westfield Corp rose as much as 15% on Wednesday, their biggest single-day gain, after the company said it would accept a $16 billion takeover offer from France’s Unibail-Rodamco.
For investors in Australia's Westfield, its $16 billion (£12 bn) sale to European property giant Unibail-Rodamco may mark a turning point for an industry under pressure to reinvent itself amid fierce online competition.
Europe’s biggest property group has agreed to buy shopping mall owner Westfield for $16 billion, marking the biggest takeover of an Australian company and a shift in global retail property to counter online shopping.
Shoppers splurged more than $1.52 billion online by Thanksgiving evening, up 16.8% over last year, and more bargain hunters turned up at stores this year as retailers opened their doors early on the eve of Black Friday.