In a surprise move, Sears and Kmart unite:
CHICAGO (AP) - The discount retailer Kmart Holding Corp. (KMRT) is combining with one of the most venerable names in U.S. retailing, Sears, Roebuck & Co. (S), in an $11 billion deal that will create the nation's third largest retailer.It looks like Kmart bought Sears, but both boards unanimously approved, so who bought whom doesn't really matter to much.The company being created by the surprise combination announced Wednesday would be known as Sears Holdings Corp., but will continue to operate the Kmart and Sears stores under their current brand names.
The combined company is expected to have $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores. That will mean it will trail only Wal-Mart Stores Inc. (WMT) and Target Corp. (TGT) among the biggest U.S. retailers.
H/T: Drudge
Posted by Kevin on November, 17 2004 at 10:25 AM
