TCO - Why Simon Property Group Shares Are Sliding Today
Shares of Simon Property Group (NYSE: SPG), the biggest mall owner in the U.S., were falling today after the company said that it is terminating a $3.6 billion deal to merge with Taubman Centers (NYSE: TCO). Simon's stock was down by as much as 9.9% by midday.
As of 12:39 p.m. EDT on Wednesday, the company's shares had slid 4.1%.
The coronavirus pandemic has dealt a serious blow to the U.S. retail industry, and Simon Property said that Taubman has suffered a "material adverse event" because of it. The company laid out two reasons it's terminating the merger, with the first being the impact of COVID-19 has had a "disproportionate effect" on Taubman.