Saks, the US department store, has been purchased by the Hudson’s Bay Company for $2.9bn.
In the announcement, the Canadian retailer, which also runs 90 Canadian department stores, said it plans to establish the Saks brand in the US, but that it would still be led by key members of its existing management team and headquartered in New York.
Both boards have already agreed to the deal with Saks, which is set to close before the end of 2013, but it is currently pending approval from Saks shareholders.
If the merger is agreed, Hudson’s Bay will pay $16 a share and take on some of its debt.
On the announcement, Saks' shares were up 3.4 per cent in pre-market trading and were up 46 per cent year to date.