Planned Saks Fifth Avenue-Neiman Marcus Deal Passes Regulatory Hurdle
The planned acquisition of Neiman Marcus Group (NMG) by HBC, the parent company of Saks Fifth Avenue, is one step nearer to closing.
The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) in connection with the transaction has expired, the luxury retail companies said in a Wednesday (Aug. 21) press release.
“The expiration of the HSR Act waiting period satisfies a closing condition for the transaction,” the release said. “The transaction remains subject to other customary closing conditions. Until closing, the companies will continue to operate separately.”
The HSR Act requires parties to certain proposed larger mergers and acquisitions to notify the Federal Trade Commission (FTC) and the Department of Justice (DOJ) about the proposed transaction before it occurs via an HSR Form. They may not close their deal until the waiting period has passed or the government terminates the waiting period, according to the FTC’s website.
The companies announced July 4 their planned transaction in which HBC would acquire NMG, the parent company of Neiman Marcus and Bergdorf Goodman, for $2.65 billion.
They said that upon the closing of the transaction, HBC will establish a “technology-powered luxury retail company” called Saks Global that will bring together the luxury retail and real estate assets of Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman. Each of those entities will continue to operate under their own brands.
“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees,” HBC Executive Chairman and CEO Richard Baker said in the July 4 press release. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.”
The new luxury powerhouse that will be created by the acquisition, with Amazon holding a stake, aims to deliver personalized luxury, PYMNTS reported in July. By integrating artificial intelligence and first-party data, the merged company aims to deliver highly tailored interactions both online and in-store, enhancing customer engagement through bespoke recommendations and seamless service.
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