Listen to this article


Macy’s, the US department-store chain, has received a takeover approach from Hudson’s Bay, as the Canadian retailer seeks to further expand it collection of American-based fashion shops.

People who have been working closely with both companies said the two were in preliminary deal talks and it was too early to determine whether a final agreement would be reached.

For Hudson’s Bay, which has been aggressively expanding its footprint in the US, including the 2013 takeover of high-end chain Saks Fifth Avenue, the acquisition of Macy’s would transform it from a niche upmarket player to a giant retailer.

The Canadian group, which also owns Lord & Taylor, is significantly smaller than the Ohio-based retailer in market value terms, and will be forced to taken on a very large debt pile to finance the transaction. Hudson’s Bay has a market capitalization of less than $2bn, while Macy’s public value it about $10bn.

Macy’s has been under significant pressure in recent years as changing shopping habits and the rise of online retailers has negatively impacted sales at traditional brick-and-mortar department stores.

Macy’s shares jumped about 10 per cent after the Wall Street Journal first reported about the talks. Hudson’s Bay, which is Toronto-listed, saw its stock rise 3 per cent.

Both companies declined to comment on the talks.

Copyright The Financial Times Limited 2017. All rights reserved.

Follow the topics mentioned in this article

Follow the authors of this article

Comments have not been enabled for this article.