Simon Property Group (Indianapolis) has reportedly terminated its proposed acquisition of Taubman Centers (Bloomfield Hills, Mich.), according to Business Insider. The deal, made back in February prior to the COVID-19 pandemic, allowed Simon to acquire 80 percent ownership and interest in The Taubman Realty Group Limited Partnership for roughly $3.6 billion.
“Taubman has failed to take steps to mitigate the impact of the pandemic as others in the industry have, including by not making essential cuts in operating expenses and capital expenditures,” Simon cited in a press release as one of the reasons it believes Taubman breached its contract. The company filed a lawsuit with a Michigan Circuit Court, wherein Simon argues Taubman breached agreements regarding its business operations.
After the announcement from Simon on Wednesday morning, Taubman’s shares dropped 41 percent, Business Insider reports.