Shopping center owner Kimco Realty Corp said on Thursday it would buy rival Weingarten Realty Investors for about $3.87 billion, adding heft to its business just as more parts of the US economy open with the rollout of Covid-19 vaccines.

Kimco said in a statement it would pay Weingarten shareholders about $30.32 per share in cash and stock, a near 11 percent premium to the company’s closing share price on Wednesday.

The deal will create a company with 559 open-air grocery-anchored shopping centres — one of the better performing parts of the commercial real estate sector during the pandemic as people rushed to stores to stock up on essential items.

The company’s tenants will include Kroger, Whole Foods and Walmart Inc, as well as discount retailers such as TJX Cos Inc, Ross Stores Inc and Burlington Stores Inc.

Kimco shareholders are estimated to own about 71 percent of the combined company’s equity after the deal, which is expected to close in the second half of 2021.

Barclays and Lazard are acting as financial advisors to Kimco, while J.P. Morgan advised Weingarten.

Reporting by Shreyasee Raj and Uday Sampath in Bengaluru; Editing by Aditya Soni