Well-known Canadian clothiers Le Chateau (CTUa.TO), Jacob and Reitmans (RET.TO) could become takeover targets as a wave of U.S. retailers follows Target Corp's (TGT.N) lead and seeks opportunities north of the border. There are plenty of reasons why Canadian retailers have become so appealing: the country's robust retail market, a healthy economy, proximity to the huge U.S. market, a common language and lower valuations of Canadian companies. But why does a U.S. retailer need to acquire a Canadian chain to set up shop? The scarcity of real estate in big Canadian cities makes takeovers of companies with ready-made store locations the surest route for foreign entrants.
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