French shopping centre giant Klépierre has announced its takeover bid of Dutch group Corio, which begins on October 31, will complete on January 8.

The announcement follows the conditional agreement signed between the two groups in July, which will create a European giant specialising in shopping centres with a portfolio valued at €21bn (£16.56bn).

Corio shareholders tendering their shares to the offer will receive 1.14 a share in new shares in the merged company. The exchange ratio of implies a premium of 15.6% based on the Klépierre closing price of €36.36 and the Corio closing price of €35.84 on 28 July 2014, the last trading day prior to takeover being announced.

The €7.2bn takeover was approved by the majority shareholders of both companies, Simon Property Group and BNP Paribas for Klépierre, and APG for Corio. Klépierre’s Laurent Morel will become chairman of the executive board of the merger group.

The new group, which will be valued at around €10bn, is expected to reduce operating costs by €60m a year.