Australian shopping giant Westfield has been taken over by a cashed-up European corporation in a deal worth $32.8 billion.
Westfield, owned by businessman Sir Frank Lowy, accepted the multi-billion dollar bid from French retail group Unibail-Rodamco 64 years after it was founded in Sydney.
Recently knighted chairman Mr Lowy along with his co-executive sons Steven and Peter are set to vote in favour of the spectacularly high-priced deal, but it will mean nothing to Australian shoppers.
Westfield, owned by businessman Sir Frank Lowy, accepted the multi-billion dollar bid from French retail group Unibail-Rodamco 64 years after it was founded in Sydney
Recently knighted chairman Mr Lowy (pictured) along with his co-executive sons Steven and Peter are set to vote in favour of the spectacularly high-priced deal, but it will mean nothing to Australian shoppers
Unibail-Rodamco will take over ASX-listed Westfield and transform it into an international property giant with 104 centres across 27 retail markets around the globe, Nine News reports.
‘What a privilege it has been to lead this great Australian company,’ an 87-year-old Mr Lowy said in a video statement.
‘We started small, but we took Westfield to the world.’
Mr Lowy and his sons intend to maintain a financial stake in the newly combined entity.
Unibail-Rodamco will take over ASX-listed Westfield and transform it into an international property giant with 104 centres across 27 retail markets around the globe
The current Westfield chairman and his sons intend to maintain a financial stake in the newly combined entity
The Slovakia-born businessman said it made sense to sell now because it was a ‘very good price’ for shareholders, but acknowledged that the sale partly reflected the global trend of consolidation and the pressures on retailers.
‘It seems like a good strategic rationale, given the synergies, and it will create the leading mall operator globally,’ said Sydney-based CLSA analyst Sholto Maconochie
The deal comes only days after Sir Frank received a knighthood from Queen Elizabeth at Windsor Castle.
Frank Lowy and his business partner John Saunders founded Westfield in Sydney in 1953.
Mr Lowy will retire as chairman of Westfield but will chair the advisory board of the new company, while his sons will remain in leadership roles.