DTZ to Acquire Cushman & Wakefield in $2B Deal

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The Agnelli family of Italy has agreed to sell Cushman & Wakefield, a real estate service group, to DTZ (LON:DTZ) in a $2 billion deal. The family will make the deal through Exor (BIT:EXO), its investment vehicle.

Sale of Exor’s 75% stake in the company will generate net revenues of $1.28 billion, which would give Exor a capital gain of $722 million.

The DTZ-Cushman merger will form one of the biggest real estate service companies in the world.

Exor will use the proceeds for future acquisitions as the company is hoping to diversify its portfolio. Currently, Exor has controlling stakes in CNH Industrial and Fiat Chrysler.

The sale will also give Exor an advantage if it wishes to raise its bid on the reinsurer PartnerRe. The company made a $6.4 million cash offer to acquire PartnerRe in an attempt to outbid Axis Capital Holdings. Exor is hoping to branch out into the financial sector to gain higher and steadier returns.

PartnerRe rejected the bid, but Exor stated that it’s committed to the bid and its terms. According to sources, Exor is considering increasing its offer.

The Cushman transaction is expected to close in the fourth quarter, providing the deal receives regulatory approvals.

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