On Monday, Hudson's Bay Co said that it would purchase Saks Inc, a luxury retailer. Hudson Bay Co is the operator of Lord & Taylor department store chain operating in the US and Canada. The deal was valued at a whopping US$2.9 billion in cash including debt.

Saks Inc is widely known for its iconic flagship located in Fifth Avenue, Manhattan. After the completion of the transaction, Saks will operate as if on their own. The company will have its own store and marketing operations and merchandising. Saks Inc will also remain headquartered in New York.

According to HBC, it had planned to bring Saks into the Canadian market. Saks will be competing with other retailers including Nordstrom Inc and Holt Renfrew. The offer, which is valued at US$16 per share piece, represents Saks shares at a 30.3% premium. The level was declared last May 20 after reports of having the company put up for sale.