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Simon Property Group completes Prime Outlets acquisition

Simon Property Group, the largest shopping mall owner in the US, announced 30 August that it has completed the $2.3 billion acquisition of Prime Outlets Inc.

The deal will add a further 21 malls to SPG's portfolio, underlining its position as the largest retail property owner in the US.

SPG amended the original deal, which had come under scrutiny from the US Federal Trade Commission, removing three properties from the proposal first announced in December. In a statement announcing the deal yesterday, SPG said it had signed a proposed consent agreement with staff at the FTC.

Second-generation chairman and CEO David Simon said in the statement: "The Prime Outlets portfolio is an excellent strategic fit and presents a compelling opportunity for Simon."

Earlier this year, SPG made a bid to acquire rival mall operator General Growth Properties for $10 billion. (Continue reading here) Highlighting SPG's cash rich status, SPG's offer included approximately $9 billion in cash. But despite this the bid failed in favour of one that was $2.6 billion lower.

SPG is the largest public US real estate company with revenues in excess of $7 billion. It currently owns or has an interest in 382 properties in North America, Europe and Asia.

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