Federated Department Stores has announced that it intends to dispose of 68 stores as part of its US$11 billion merger with The May Department Store Company. The list of stores targeted for divestiture by Federated includes 12 stores in The Westfield Group's US portfolio where there is overlap between Federated and May Co. Westfield is in discussions with Federated for the acquisition of those stores.
"The discussions are at an initial stage and will take some time to complete," said Managing Director Mr Peter Lowy. "If successful, the purchase of these stores would create the opportunity to further redevelop and improve our portfolio, as well as substantially increase our development pipeline in the United States."
The Federated/May Co. merger will create a company with nearly 1,000 department stores in the United States and is expected to close in the third quarter, pending completion of regulatory review. Westfield's US portfolio includes a total of 50 stores currently operated by the May Co. and 39 stores operated by Federated. As announced, it is expected that most of the May Co. stores retained by Federated will be converted to the Macy's nameplate following the merger.
Source: Westfield Group