Bondholder intu is set to merge with Hammerson, a major British property development and investment company, to create a £21bn company.
A spokesperson for Hammerson said the deal will “create a pan-European portfolio of high-quality retail and leisure destinations, with enhanced exposure to high-growth markets and which will benefit from evolving consumer trends”.
The deal will see intu increase its footprint across the UK and Europe, with the intu branding being utilised in the new group.
Hammerson owns many shopping malls across the UK, including Birmingham's Bullring and Leicester's Highcross, while intu operates many other centres across the UK, including Derby and Nottingham.
John Strachan, chairman of intu and proposed senior independent director of the enlarged group, said: “A combination of both intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.
"intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities.
"I am proud of the financial and operational success that intu’s management team has delivered and pleased to see that the intu brand will continue.”