Hammerson hires McKinsey to form fresh strategy

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Hammerson

Hammerson is preparing to announce a new strategy following the failed acquisition of rival shopping centre group Intu in April.

According to The Times, the retail property giant has flown in management consultancy firm McKinsey & Company to help it understand the global retail trends and launch a new strategy, which is expected to be revealed to shareholders next month.

This comes after Hammerson’s £3.4 billion bid to acquire its smaller rival Intu was scrapped due to both increasing opposition from shareholders, who were concerned that Intu’s portfolio would dilute the quality of Hammerson’s estate, and fears over the state of the UK’s retail market.

Hammerson also rebuffed a £5 billion takeover bid by French firm Kleppiere during the negotiations with Intu.

Following these two failed opportunities to expand its operations, Hammerson told shareholders it would launch a review of its operations in order to maximise the delivery of value to them.

This review is now understood to have been undertaken by McKinsey, which was also enlisted to help Sir Philip Green turn around the fortunes of Topshop earlier this year.

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