What: Simon Property Group and Brookfield Asset Management have pooled their resources to bid USD 68 per share for Kohl’s, which would value the department store at some $8.6 billion.

Why is it important: Simon and Brookfield have teamed up previously, buying Kohl’s rival J.C. Penney and fast-fashion retailer Forever 21 in 2020, and teen retailer Aeropostale in 2016, all out of bankruptcy.

Brookfield two years ago announced it aims to put USD 5 billion toward revitalizing struggling retailers, focused on those with USD 250 million or more in normalized revenues.

Simon Property Group CEO David Simon has previously touted those investments as an opportunity to rescue retailers that would otherwise fade from the landscape.

The plan would have one entity run both J.C. Penney and Kohl’s, capitalizing on synergies that would help reach a goal of slashing USD 1 billion in expenses at Kohl’s, according to the Post’s report.

Kohl’s is mainly found at strip centers, so it’s possible that these mall REITs are interested in expanding their reach in those locations, and they would benefit from moving Kohl’s to fill empty spaces at their indoor malls.

J.C. Penney owners prepared to buy Kohl’s for USD8.6B