Two commercial giants to merge

Two commercial real estate giants are to merge after a recent deal.

American Realty Capital Properties and Cole Real Estate Investments agreed Oct. 23 to a merger. American Realty will buy Cole for $7.2 billion with a mix of cash and stock, as well as taking on Cole's approximate $4 billion in debt.

Shareholders of both companies still need to approve the deal, but it is expected to be finalized in early 2014.

The two companies own some of the biggest commercial chains in the country, including Home Depot, CVS, Walgreens, AT&T and FedEx. The merged company will now own more than 3,700 retail, office and other properties for 600 tenants covering more than 100 million square feet in all but one state, plus Puerto Rico, according to The Wall Street Journal.

"These two companies were meant to be together," American Realty Chief Executive Nicholas Schorsch said in an interview with The New York Times?. "This is a one plus one equals four or five scenario."

American Realty reportedly made an unsolicited offer to Cole in March, but it was rejected and Cole went public on the New York Stock Exchange. Since June, the company's shares have climbed more than 17 percent. Stockholders of Cole can now either choose 1.0929 shares of American Realty stock, which is valued at $14.59, or $13.82 per Cole share, according to The New York Times.

"This was a once in a lifetime moment when you actually have a perfect storm for these two companies to come together," Schorsch said. "You can say put Ford and General Motors together, but it doesn't always work. This really is a phenomenal union in a moment in time that may never come again."

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