Hudson's Bay Co is buying Germany's leading department store chain, Kaufhof, from Metro for 2.8 billion euros ($3.2 billion), giving the Saks owner a launch pad to expand into Europe.The deal, the largest German inbound M&A this year, comes as department stores start to enjoy a revival by investing in ecommerce in tandem with revamped flagship stores.Hudson's Bay, whose shares rose as much as 13.4 percent, said it would sell at least 40 of Kaufhof's owned or partially owned properties to its real estate joint venture with Simon Property Group for at least 2.4 billion euros.The company said it expects to fund the Kaufhof deal from the proceeds of the sale of the real estate. Hudson Bay said it does not intend to issue equity and expects to incur limited additional debt.
Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust (REIT). Shares of SPG fell by 0.6% or $-1.07/share to $175.80. In the past year, the shares have traded as low as $162.43 and as high as $206.31. On average, 1452840 shares of SPG exchange hands on a given day and today's volume is recorded at 1486062.