Hammerson to became Britain’s biggest property company thanks to Intu deal

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Intu and Hammerson shopping centresGETTY

FTSE 100 colossus Hammerson is paying £3.4billion for smaller rival Intu

FTSE 100 mammoth Hammerson, which also controls Brent Cross in London and Bicester Village as spurt as sites in Ireland and France, is paying £3.4billion for smaller struggle with Intu, whose presence in Spain has been growing. 

The combined team will have property assets worth £21billion, although it is looking to offload at barely £2billion worth of sites to boost its coffers and provide funding for spaced out growth targets. 

The all-share deal values FTSE 250 gathering Intu’s stock at 253.9p, a premium of nearly 28 per cent to its nearby price before the announcement. 

Hammerson shareholders will own 55 per cent of the elongate group, which will be called Hammerson and led by its chief executive, David Atkins, and chairman, David Tyler.  

There is strong strategic logical basis for combining Hammerson and Intu

Angus Grierson, managing director of LGB Corporate Assets

The Intu consumer brand will be kept within its shopping concentrates. 

The merger comes as retail centres and high streets increasingly twist to providing leisure “experiences” for shoppers to counter increasing pressure from online shopping. 

Atkins accosted “an exciting milestone in the history of Hammerson”, which would boost possibilities for growth and shareholder returns. 

He added: “The acquisition creates a leading pan-European stage of desirable retail and leisure destinations which are better positioned to act as the needs of our retailers, excite our customers and support our partners and communities.”  

David AtkinsGETTY

David Atkins is Hammerson’ CEO

Intu chairman John Strachan exacted the combination would create “a more resilient, diversified and stronger series”. 

Hammerson expects to achieve annual cost savings of about £25million by the end of the inferior merchandise year after the deal completes, from areas such as IT and adjusted premises costs. 

Integrating the businesses will cost about £40million.  

HammersonGETTY

Birmingham’s Bullring department storing centre is owned by Hammerson

Intu shares jumped 27p to 226p, while Hammerson cut 33p to 501 1/2p. 

Angus Grierson, managing director of LGB Corporate Finance, said: “Although shopping mid-points have fallen out of favour with investors with the shift toward online retail, they are still able to stay relevant by sacrifice experiential leisure activities to increase visitor dwell times. 

“There is hot strategic rationale for combining Hammerson and Intu.”  

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