On February 10, 2020, Simon Property Group announced it will acquire an 80% stake in The Taubman Realty Group for approximately $3.6 billion. Simon Property Group will acquire all Taubman common stock at $52.50 per share in cash, a 51% premium to Taubman’s closing price on February 7, 2020. The Taubman family will sell around one-third of its ownership interest but retain a 20% stake in the company. Founded in 1950, Taubman is involved in the ownership, management or leasing of 26 super-regional shopping centers in the US and Asia. The company’s Chairman, President and Chief Executive Officer Robert Taubman will stay on and continue to manage 24 retail assets (21 in the US and three in Asia), a total of approximately 25 million feet of gross leasable area. The deal will boost Simon’s funds from operations per share at least 3% on an annualized basis as soon as the deal closes. Simon expects the deal will improve Taubman’s ability to invest in innovative retail environments, deliver better shopping and entertainment experiences to consumers and create job opportunities for local communities. Coresight Research insight: Taubman’s appeal includes the highest average rent per square foot among the largest REITs. Meanwhile, Simon, which enjoys fatter EBIT margins, will likely be able to lower the operating-cost ratio at Taubman, beyond the synergies typically associated with an acquisition.