French property giant Unibail and Dutch shopping centre investor Rodamco Europe today announced plans to create Europe’s largest retail property company with a portfolio of €21.7bn (£14.7bn)

While described by both companies as a merger, the proposed share-for-share deal pits 0.53 Unibail share against 1.00 Rodamco share and effectively signals a Unibail takeover of Rodamco. CEO Maarten Hulshoff will leave his role if the deal wins shareholder consent.

The Unibail bid implies an offer price of €124.80 (£84.90) a share or 15% premium to last Thursday’s closing share price of €108.44 (£73.70)

The deal, which will enable Unibail to broaden its exposure to shopping centre property across Europe, is thought to be supported by both boards and management teams.

Rodamco Europe’s largest shareholder, PGGM, which holds 24.5% of its share capital, has approved this transaction.