McDermott Advises SIGNA in Joint Venture with Hudson’s Bay Company and Acquisition of 50 percent of HBC’s European Real Estate Portfolio
Düsseldorf – McDermott Will & Emery advised Austrian SIGNA Group on the formation of a joint venture with Canadian Hudson’s Bay Company (HBC) to merge retail chains Galeria Kaufhof and Karstadt Warenhaus. SIGNA also acquired 50 percent of HBC’S European real estate portfolio. The closing of the transaction is subject to regulatory approvals.
SIGNA and HBC intend to form a new retail company which will include Galeria Kaufhof GmbH, Karstadt Warenhaus GmbH, HBC’s European retail business, Karstadt Sports and all food and catering departments of both companies. In addition, the e-commerce businesses of both retail chains will merge. The new company will have 241 large city-center locations in Europe and employ a total of 32,000 staff.
SIGNA Retail will hold 50.01 percent of the shares of the new holding company and HBC will hold the remaining 49.99 percent. Within the partnership, SIGNA Prime Selection AG will acquire a 50 percent interest in HBC’s European real estate holding. HBC will continue to hold 50 percent of the real estate assets.
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