Shopping center owner Kimco Realty Corp said on Thursday it would buy rival Weingarten Realty Investors for about $3.87 billion, adding heft to its business just as more parts of the U.S. economy reopen with the rollout of COVID-19 vaccines.

The deal will create a company with 559 open-air grocery-focused shopping centers — one of the better performing parts of the commercial real estate sector during the pandemic as people rushed to stores to stock up on essential items.

The company’s tenants will include Kroger, Whole Foods and Walmart Inc, as well as discount retailers such as TJX Cos Inc, Ross Stores Inc and Burlington Stores Inc.

Kimco said in a statement it would pay Weingarten shareholders about $30.32 per share in cash and stock, a near 11% premium to the company’s closing share price on Wednesday.

Read more at Reuters

By Shreyasee Raj, Uday Sampath and Aditya Soni

Image Source