Shopping center REIT Kimco Realty has announced it will acquire rival REIT Weingarten Realty Investors for roughly $3.87 billion. The combined company is expected to have a pro forma equity market cap of $12 billion and a pro forma total enterprise value of $20.5 billion.

Kimco's portfolio consists of open-air, grocery-anchored shopping centers and mixed-use assets, and Weingarten Realty is a grocery-anchored Sun Belt shopping center owner, manager and developer.

Under the terms of the agreement, each Weingarten common share will be converted into 1.408 newly issued shares of Kimco common stock plus $2.89 in cash. Based on the closing stock price for Kimco on April 14, 2021, this represents a total consideration of approximately $30.32 per Weingarten share. On a pro forma basis, following the closing of the transaction, Kimco shareholders are expected to own approximately 71% of the combined company's equity, and Weingarten shareholders are expected to own approximately 29%. The parties currently expect the transaction to close during the second half of 2021, subject to customary closing conditions, including the approval of both Kimco and Weingarten shareholders. This strategic transaction was unanimously approved by the Board of Directors of Kimco and the Board of Trust Managers of Weingarten.