$2.65 Billion Saks-Neiman Marcus Merger Approved

DALLAS—HBC, Saks Fifth Avenue's parent firm, has cleared a major regulatory hurdle, bringing the proposed acquisition of Dallas-based Neiman Marcus Group closer to completion.

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HBC said in a statement on Wednesday that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has ended, completing a closing condition for the merger. 

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The expiration of the HSR Act waiting period satisfies a closing condition for the transaction. HBC went on to say,  "The transaction remains subject to other customary closing conditions. Until closing, the companies will continue to operate separately." 

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The merger, announced last month, aspires to create a luxury retail giant by joining two iconic high-end fashion brands.

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The proposed merger of Saks Fifth Avenue and Neiman Marcus, announced last month, seeks to establish a dominant power in the luxury retail market.

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The merged corporation, dubbed "Saks Global," will include Saks Fifth Avenue, Neiman Marcus, Saks OFF 5th, Bergdorf Goodman, and significant real estate assets. This strategic alliance is projected to establish Saks Global as a dominant player in the high-end retail industry.

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The acquisition will also combine HBC's U.S. real estate assets with Neiman Marcus Group's real estate assets, resulting in a $7 billion portfolio of luxury retail buildings.

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The premium department store, which opened in Dallas in 1907, has been a downtown icon for almost a century. The corporation has had numerous ownership changes, including a bankruptcy restructuring in 2020.

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As the companies continue to function separately until the transaction is completed, the successful clearance of this regulatory hurdle marks a significant step toward the formation of a new force in the high-fashion retail sector.

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