Hudson's Bay to buy Saks for $2.9B

HBC has 48 Lord & Taylor department stores in the U.S. Northeast and in Canada it has 90 Bay department stores and 69 Home Outfitters housewares stores. (J.P. Moczulski/Reuters)

Hudson's Bay Co. says it will acquire U.S. luxury retailer Saks Inc. in a friendly deal worth $2.9 billion US.

The Toronto-based company says it will pay $16 US per Saks share plus assume debt as part of the transaction.

HBC has been eyeing the struggling high-end American chain for the past few months and there were reports on the weekend that a deal was close.

However, an earlier report in the New York Post late last week said HBC could face competition from at least one other potential buyer for Saks.

Saks operates 42 stores, including its flagship Saks Fifth Avenue in New York.

HBC has 48 Lord & Taylor department stores in the U.S. Northeast and in Canada it has 90 Bay department stores and 69 Home Outfitters housewares stores.