Choice Properties Real Estate Investment Trust has signed a deal to acquire Canadian Real Estate Investment Trust (CREIT) for $3.9 billion in cash and stock.

The combination of Choice Properties, which counts Loblaw as its principal tenant and largest unitholder, and CREIT will create a company with a diversified portfolio of 752 properties.

Under the agreement, CREIT unitholders will have the choice of $53.75 in cash or 4.2835 Choice Properties units for each CREIT unit held, subject to limits on the maximum amount of cash and units available.

CREIT units closed at $43.54 on the Toronto Stock Exchange on Wednesday, and were trading above $50 on Thursday morning.

Following the deal, Loblaw Companies Ltd. and George Weston Ltd. will own approximately 62% and 4% of the combined company, respectively. Canadian REIT unitholders will own approximately 27%.

Read: Global REITs to deliver up to 10% in 2018: report

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