Simon Property cooperating with FTC on Prime Outlets inquiry

Simon Property Group Inc., the largest U.S. mall owner, is cooperating with a Federal Trade Commission inquiry into its proposed purchase of Prime Outlets Acquisition Co., Chief Executive Officer David Simon said April 30.

Locally, Prime Outlets has a Huntley mall.

Simon expects to close the transaction, he told reporters and analysts during a conference call about earnings. He doesn't expect the FTC's review to reveal any antitrust issues, adding that the company is "fully cooperating."

Simon Property agreed in December to buy Prime Outlets from Lightstone Group for $2.33 billion including debt. The deal would give Indianapolis-based Simon an additional 22 retail outlets, increasing its total to more than 60. Gap Inc., which has stores in both Simon and Prime locations, said in February it was contacted by the FTC about the planned acquisition.

Simon, which is trying to buy a stake in its biggest competitor, General Growth Properties Inc., doesn't intend to sell any of Prime Outlets' properties, David Simon said April 30. General Growth filed for Chapter 11 bankruptcy a year ago.