Sale over

10 June 2020 By Lauren Silva Laughlin Follow @TheRealLSL

Simon Property is backing out of its $3.6 bln purchase of U.S. operator Taubman, saying the seller mishandled Covid-19. Unlike some repentant buyers, Simon says it wants out, not just a better price. Still, this isn’t a vote of confidence in its dealmaking or business model.

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Simon Property said on June 10 it is terminating its merger agreement to buy rival mall operator Taubman Centers. The two companies agreed on Feb. 9 to merge. Simon was to pay Taubman shareholders $52.50 per share in cash, equivalent to $3.6 billion.

Simon cited Covid-19, which it claims has had “a uniquely material and disproportionate effect” on Taubman properties. Simon also said that Taubman breached its obligations by not cutting operating expenses and capital expenditures in response to the pandemic.

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