Newmark Rebuffed Recent Takeover Approach From Cushman & Wakefield

Cushman & Wakefield Plc recently approached Newmark Group Inc. about a potential takeover, but was rebuffed by the rival real estate brokerage, according to people familiar with the matter.

Newmark isn’t currently interested in a deal in part because it thinks Cushman & Wakefield has too much debt, said one of the people, all of whom asked to not be identified because the matter isn’t public.

Cushman & Wakefield has about $3.8 billion in debt, according to data compiled by Bloomberg. The stock rose 4.3% to $11.88 at 2:02 p.m., giving it a market value of about $2.6 billion.

Newmark, which has cut jobs and reduced salaries for its top executives as the pandemic hit the real estate market, has a market valuation of $1.2 billion. Its shares rose 12% to $5.20.

Representatives for Chicago-based Cushman & Wakefield and Newmark, based in New York, didn’t immediately respond to requests for comment.

Cushman & Wakefield and Newmark are two of the largest publicly traded commercial real estate brokers, a sector that has been consolidating in recent years as companies sought scale to better accommodate ever-larger clients with global ambitions.

Jones Lang LaSalle Inc. acquired the brokerage HFF Inc. last year for about $2 billion. In 2015, Cushman & Wakefield merged with DTZ, a property services company backed by private equity firm TPG.

Interdealer broker BGC Partners Inc. spun off Newmark in 2018.

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