The competition watchdog will not oppose a merger of two major shopping centre owners, as long as one of them offloads a centre in south east Melbourne.
Federation Centres and Novion plan to merge to create an $11 billion company with 91 shopping centres across Australia.
The Australian Competition and Consumer Commission is concerned the deal will hurt competition in the Frankston region of Melbourne, as the companies own the area’s two main centres.
Either Federation Centres will sell its stake in Karingal Hub or Novion will offload its Bayside Shopping Centre to allow the merger to go ahead.
The deal still needs approval from the Foreign Investment Review Board, and Novion security holders are meeting to vote on the deal on May 27.