Hammerson has dropped its bid to takeover rival shopping centre owner Intu, in a deal which had been slated to be worth £3.4bn.
In a statement, Hammerson said the decision came after the board “reassessed the proposed acquisition of Intu in light of updated information on current market dynamics in the UK,” reporting that the financial strength of many retailers had “softened” since the takeover was agreed. It said that the “heightened risks associated with the Intu acquisition outweigh the long term merits.”
As a result, it no longer intends to recommend Hammerson shareholders to vote in favour of the deal.
In response to the news, Intu released a statement saying that it “regards as unsatisfactory the explanations given by the Board of Hammerson for its withdrawal of its recommendation of the Intu transaction.”
“The Board of Intu is entirely confident of Intu’s commercial future and prospects. The trading update issued yesterday underlined the key strengths of Intu’s business. Intu will further update shareholders in due course on its plans.”