Westfield to Share $5.3-Billion Buy of Mall Owner Rodamco

An agreement by Westfield America Trust, Simon Property Group Inc. and Rouse Co. to buy Rodamco North America in a $5.3-billion transaction, ending a six-month battle for control of the fourth-largest owner of shopping malls in the U.S.

Australian property company Westfield, whose U.S. operations are based in Los Angeles, will acquire interests in 14 of Rodamco’s 35 malls, becoming one of the biggest mall managers in the U.S. Simon, the No. 1 mall owner and a partner with Rodamco in some of the malls, will get part of 13 malls, and Rouse will buy stakes in eight. Westfield currently has a 24% stake in Rodamco.

The value of the transaction is at the low end of a $5.3 billion-to-$6.3 billion range estimated by Prudential Financial analyst James Sullivan. It furthers the consolidation underway in the U.S mall business, as the largest owners look to gain control of the country’s best-performing malls. Among Rodamco’s malls is Houston’s Galleria.