(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

SAN DIEGO-Kimco Realty Trust is acquiring Pan Pacific Retail Properties, a locally based owner of 138 West Coast shopping centers, for about $4 billion. Kimco, based in New Hyde Park, NY, will pay $70 per share for Pan Pacific, acquiring $2.9 billion in equity and $1.1 billion in debt.

Pan Pacific's stock closed on Friday at $70. Kimco, which has received $3 billion in financing commitments for the deal, may issue $10 per share of its common stock to Pan Pacific shareholders as part of the transaction. Executives expect the deal to close in the fourth quarter.

"This merger fits well with our strategy of owning the highest quality shopping center portfolio, growing our management business and generating solid investment returns for our partners and shareholders while conserving our own equity capital," says Milton Cooper, Kimco's chairman and chief executive officer, in statement. Kimco currently owns 1,117 properties across the country.