You’d think they were already big enough.
But Simon Properties Group Inc. – the largest shopping mall owner in the country — wants to get bigger.
It currently has about about 350 malls, including Miller Hill Mall in Duluth.
Now it wants to acquire the No. 2 mall owner, General Growth Properties, Inc., which has more than 200 malls in 44 states.
Simon Properties has offered $10 billion to buy struggling General Growth which is in the middle of Chapter 11 bankruptcy proceedings and trying to restructure its debt.
If the takeover is successful, Simon Properties would have 550 malls, at least one-third of the U.S. market, The Wall Street Journal reports.
And it would have nearly half the country’s 319 most lucrative malls when it comes to sales.
So what’s wrong with that?
Surely, creditors and shareholders would be happy to see some kind of return on their investment.
But, pointed out the Journal, Simon Properties would have a monopoly. And it would give Simon Properties "unmatched power" over retailers and control over the look and atmosphere of the malls.
In other words, every one of their malls could look pretty match the same.