Hudson’s Bay Acquires Neiman Marcus in $2.65 Billion Deal

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Hudson’s Bay Co., owner of Saks Fifth Avenue, has completed a $2.65 billion acquisition of luxury retailer Neiman Marcus. The merger, aimed at addressing challenges in the stagnating personal luxury market, will unite the two retailers under the new company name, Saks Global, with the support of Amazon and Salesforce, both of which will take minority stakes.

The acquisition, approved by the boards of both companies, is expected to be officially announced this evening. The deal will be financed by $2 billion raised from investors and will consolidate 39 Saks Fifth Avenue stores and 36 Neiman Marcus stores.

This strategic move is intended to reduce costs and enhance profitability as the personal luxury goods market faces a slowdown. Neiman Marcus filed for bankruptcy four years ago due to debt issues and pandemic-related store closures. Saks, meanwhile, has been grappling with liquidity problems.

Negotiations between the two companies have been ongoing for years, with Neiman Marcus previously rejecting a nearly $3 billion offer from Hudson’s Bay in December. Both Neiman Marcus and Hudson’s Bay have yet to comment on the acquisition.