Westfield Corp Ltd (ASX: WFD) climbed to a record high of $10.14 on Monday after The Australian reported that the company could be in the sights of French shopping centre behemoth, Unibail-Rodamco.
Unibail-Rodamco was formed in 2007 as a result of a merger between the Dutch Rodamco and France's Unibail. The group now owns 90 malls spread across 12 different countries in Europe, so Westfield Corp's heavy exposure to the US market may prove quite appealing to the company – particularly with strong growth tipped for the country over the coming years, compared to an otherwise gloomy outlook for the broader global economy.
Westfield Corp owns and operates 40 shopping centres spread across the US and UK while it is in the process of developing some of the biggest shopping complexes in the world, including the World Trade Centre mall in New York and another in Milan.
With Westfield having spun its slower-growing Australian assets off into a new entity, called Scentre Group Ltd (ASX: SCG), Westfield Corp is now smaller (making it an easier acquisition target) while it also offers stronger growth prospects. Given the changing retail landscapes, the Lowy family may be tempted to head for the exits if they're offered a decent enough price for the company they've built from the ground up.
Should you buy?
Firstly, it should be noted that investors should not base their investment decision around Westfield being a possible takeover target. Instead, they should focus on the business' prospects and establish whether they'd be happy owning the business for years to come even if a takeover offer never comes to fruition.
That said, Westfield Corp appears to be a reasonable buy today. In addition to its exposure to the recovering US and UK economies, investors who buy today should also benefit from a lower Australian dollar given that it generates all of its earnings overseas.
