Business

Mall owner Simon terminates its deal to buy Taubman due to pandemic

Shoppers ascend and descend escalators at the King of Prussia Mall, owned by Simon Property Group, United State’s largest retail shopping space, in King of Prussia, Pennsylvania.

Mark Makela | Reuters

The biggest U.S. mall owner Simon Property Group said Wednesday morning it has exercised its contractual rights to terminate its deal to acquire the high-end mall owner Taubman

Taubman shares tanked more than 40% on the news. Simon shares were last down about 1%. 

A representative from Taubman was not immediately available to comment. 

Simon said in a press release that its merger agreement “specifically gave Simon the right to terminate the transaction in the event that a pandemic disproportionately hurt Taubman.” 

“Taubman’s significant proportion of enclosed retail properties located in densely populated major metropolitan areas, dependence on both domestic and international tourism at many of its properties, and its focus on high-end shopping have combined to impact Taubman’s business disproportionately due to the COVID-19 pandemic when compared to the rest of the retail real estate industry,” it said. 

This is a developing story. Please check back for updates. 

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