30 Jul 2013

Hudson's Bay Company buys Saks dept store

5:37 am on 30 July 2013

Hudson's Bay Company of Canada has bought the US department store Saks in a $US2.9 billion deal.

Hudson's Bay, which operates department store chain Lord & Taylor in the United States, said the acquisition would allow it to establish Saks in Canada.

Hudson's Bay, which also runs 90 department stores in Canadian, will pay $US16 per share for Saks and will also take on some debt. Both boards have agreed to the deal.

However, the BBC reports Saks shareholders still need to approve the merger.

Hudson's Bay also also operates Home Outfitters, a homestore chain in Canada. It said it would continue to operate Saks as a separate brand.

Hudson's Bay said it expected to save C$100 millon in annual synergies within three years of the merger, which is expected to complete before the end of the year.

HBC was founded on 2 May 1670 when King Charles of England granted a charter to a cousin and his associates. It is the oldest commercial corporation in North America.