Austrian property group Signa Holding has acquired a 50 percent stake in Hudson’s Bay’s €3.25 billion ($3.78 billion) German property portfolio.
The companies will merge Galeria Kaufhof and Karstadt chains to form Europe’s third-biggest department store chain, which will have annual sales of approximately €5.4 billion ($6.3 billion).
Austria’s Signa will hold a 50.01 percent stake in the combined retail company, while HBC will hold the remaining stake.
The group will have 243 stores in Germany, Belgium and the Netherlands.
Signa owns Karstadt, a department store selling everything from apparel to household appliances, while HBC runs department stores overseas called Galeria Kaufhof and Galeria INNO.
The new venture will include those assets, as well as the European arm of HBC’s Saks Off Fifth brand, Hudson’s Bay in the Netherlands, Kardstadt sports stores, and both companies’ food and catering businesses.
