Saks buys Neiman Marcus in $2.65B deal
Following the merger of the two legacy retailers, the new entity will be called Saks Global
What happened
Hudson's Bay Company, which owns Saks Fifth Avenue, will buy Neiman Marcus and Bergdorf Goodman in a $2.65 billion deal announced Thursday. The luxury retailers will be combined under a new entity, Saks Global, but will continue to operate under their existing brand names. Amazon and Salesforce will have minority stakes in the new company.
Who said what
"We're thrilled to take this step in bringing together these iconic luxury names," said HBC CEO Richard Baker. The merger comes as "consumers are showing restraint — particularly on prestige purchases — as they tussle with high inflation and interest rates," The Washington Post said.
HBC and Neiman Marcus have been in talks for years, but while the merger was anticipated, Amazon's stake adds "a bit of spice," GlobalData's Neil Saunders said to The Associated Press. Amazon, which wants to be a bigger player in luxury retail, will share its expertise in logistics and personalization technology with Saks Global to help the new powerhouse thrive in the increasingly crucial online market.
What next?
Federal antitrust regulators could scrutinize the deal, and a lawsuit is "possible," said John Kirkwood, a professor at Seattle University School of Law, in the Post. "But this doesn't jump out at you as a really powerful case."
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