Simon Property Group (NYSE: SPG) will sell either its Cincinnati Premium Outlet center in Monroe or its Prime Outlets-Jeffersonville outlet center as a result of the FTC working to resolve competition concerns raised after Simon purchased Prime Outlets. Cincinnati Premium Outlets, which opened last August, is operated by Premium Outlets, a division of Simon.
Last December, Indianapolis-headquartered Simon Property Group signed an agreement to acquire all of Prime’s 22 outlet centers for approximately $2.3 billion.
In addition, Simon has agreed to remove radius restrictions for tenants with stores in its outlet malls serving the Chicago and Orlando markets. This will allow competing centers or outlet mall developers looking to enter those markets to sign leases with tenants that otherwise would be prohibited from doing so because of radius restrictions.
Without the settlement provisions, Simon’s acquisition of Prime would have illegally reduced outlet center competition by eliminating direct competition in southwest Ohio, Chicago and Orlando; giving Simon a monopoly in outlet centers serving the southwest Ohio market; and allowing Simon to prevent or limit new outlet center entry and competition in the Chicago and Orlando markets.
Les Morris, director of corporate public relations for Simon Property Group, declined to comment.
The commission vote approving the complaint and proposed consent order was 5-0. It will be subject to public comment for 30 days, until Dec. 10. Then, the commission will decide whether to make it final.
SOURCE: Business Courier
No comments:
Post a Comment