Hudson's Bay Company Announces $2.65 Billion Purchase of Neiman Marcus Group

Neiman Marcus Group – a luxury department store operator – will be acquired by the owner of Saks Fifth Avenue, which also operates in the same sector. Both are American. The deal had a reported value of US$ 2.65 billion and represents the union of the two largest luxury department store companies in the country. The transaction was announced this Thursday (4) by Hudson's Bay Company (HBC), the oldest corporation in Canada and owner of Saks Fifth Avenue. It is popularly known as “The Bay”.

Additionally, Amazon and Salesforce will assist in the transaction. The assistance will be through the purchase of shares in the new company that will be created, Saks Global. Both companies will have minority stakes (less than 50%).

HBC CEO makes statement

On Thursday, The Bay CEO Richard Baker commented enthusiastically on the sale: “For years, many in the industry have anticipated this transaction and its benefits for customers, partners and employees… It is a brilliant time for the luxury industry.”

The Hudson's Bay Company was founded in 1670, during the period of the 13 American colonies. Today, it has its own stores and also owns famous brands, such as Saks Fifth Avenue. The company focuses on retail.

_{Saks Fifth Avenue opened its first store on Fifth Avenue in New York (Photo: reproduction/wiggijo/Pixabay)}

Companies involved

The Neiman Marcus Group was founded in 1907 in Dallas, Texas, and is famous for offering high-quality products in its stores, which specialize in accessories and home goods. Saks Fifth Avenue began its operations in 1924 in New York City. It is a global icon of luxury retail.

After purchasing the supermarket chain “Whole Foods” in 2017, this will be Amazon’s first investment in physical stores. The company founded by Jeffrey Bezzos is a regular among the most valuable brands in the world. Despite focusing on e-commerce, the multinational also invests in other sectors. It recently announced financial investments in Germany for the development of the cloud in the country.

Featured Photo: Saks Fifth Avenue acquires Neiman Marcus Group (Photo: John Greim/Getty Images Embed)