Simon, Taubman Modify Merger Agreement

(photo courtesy of RATIO Architects)

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Indianapolis-based Simon Property Group Inc. (NYSE: SPG) and Taubman Centers Inc. (NYSE: TCO) in Michigan have announced an agreement to modify certain terms of a previously-announced merger. As part of the deal, Simon would save approximately $800 million from the original $3.6 billion purchase price, according to The Wall Street Journal.

The modified agreement would see Simon acquiring an 80% ownership interest in The Taubman Realty Group Limited Partnership at a price of $43 per share, down from $52.50 per share in the original agreement.

The Taubman family will sell approximately one-third of its ownership interest at the modified price and remain a 20% partner in TRG.

The modified deal has been approved by the boards of directors of both companies. The deal is expected to close in late 2020 or early 2021, pending Taubman shareholder approval and customary closing conditions.

In June, Simon announced it had pulled out of the deal, citing the COVID-19 pandemic’s effect on Taubman, as well as Taubman’s breach of the original merger agreement. 

Simon had filed a complaint in the Circuit Court for the 6th Judicial Court of Oakland County, Michigan. Both Simon and Taubman say they have settled their pending litigation as a result of the modified deal.