Chicago, July 10 (Reuters): Kimco Realty Corp, an owner of shopping centres anchored by supermarkets, will acquire all of Pan Pacific Retail Properties Inc’s outstanding shares for about $2.9 billion, the companies said on Monday.

Kimco may elect to issue up to $10 per share of the total merger consideration of $70 per share in the form of Kimco common stock. Including debt, the deal’s total value is about $4 billion, according to the companies.

The deal, subject to approval by Pan Pacific shareholders, is expected to close in the fourth quarter, the companies said.

Kimco, a real estate investment trust based in New Hyde Park, New York, said it had received financing commitments of up to $3 billion, which it may use to fund all or a portion of the total merger consideration. JP Morgan and Merrill Lynch have agreed to provide the financing.

“We feel very good about the quality and long-term prospects for the neighbourhood shopping centres in Pan Pacific’s portfolio,” Kimco Chief Executive Milton Cooper said in a statement.

Pan Pacific’s portfolio contains 138 properties, encompassing about 22.6 million square feet.