Hammerson agrees £3.4bn deal to buy rival Intu, combined portfolio at £21bn

Hammerson, one of the United Kingdom's leading investors in retail space, is to acquire competitor Intu in a deal worth £3.4bn.

The merger, which was announced on Monday and on which shareholders will vote early next year, will give the new company a portfolio of retail and leisure destinations worth a combined £21bn.

Upon completion, Hammerson is hoping to tap into new, high-value markets such as those in growing economies like Ireland and Spain, while using extra cash to expand its Premium Outlets platform.

"This marks an exciting milestone in the history of Hammerson," said its Chief Executive David Atkins.

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"The acquisition creates a leading pan-European platform of desirable retail and leisure destinations which are better positioned to serve the needs of our retailers, excite our customers and support our partners and communities.

"I hold Intu’s high-quality centres in high regard and I look forward to working with a strengthened team to enhance the performance of our entire portfolio."

Atkins will lead the merged company as Chief Executive, with Hammerson shareholders owning 55% and Intu investors the remaining 45%.

Intu's Chairman John Strachan added: "A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.

"Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets present a highly attractive proposition for retailers and shoppers."