Simon Property Group has exercised its contractual rights to terminate its Feb. 9, 2020, merger agreement with Taubman Centers. The prospective deal was valued at approximately $3.6 billion when it was announced in February.
Simon also filed an action in the Circuit Court for the 6th Judicial Circuit of Oakland County, Michigan, against Taubman Centers, Inc. and The Taubman Realty Group Limited Partnership requesting a declaration that Taubman has suffered a material adverse event (MAE) under the merger agreement and has breached the covenants in the merger agreement governing the operation of Taubman’s business.
As detailed in the complaint filed this morning, Simon’s termination of the merger agreement is based on two separate and independent grounds. First, the COVID-19 pandemic has had a uniquely material and disproportionate effect on Taubman compared with other participants in the retail real estate industry. Second, in the wake of the pandemic, Taubman h
