Kmart and Sears are merging in an $11 billion deal that will create the nation's third largest retailer, after Wal-Mart and Target. The company being created in the merger announced today would be known as Sears Holdings Corporation, but it will continue to operate Kmart and Sears stores under their current brand names. The combined company is expected to have $55 billion in annual revenues, 2350 full-line and off-mall stores plus 1100 specialty retail stores. The new company will be headquartered in the Chicago suburb of Hoffman Estates where Sears is based, but it says it will maintain a "significant presence" in Troy, Michigan, which is home to Kmart.
The man behind this deal is Edward Lampert, Chairman of Kmart Holding Corporation. As a major debt-holder in Kmart, he eventually ended up with a 55% stake in Kmart after it emerged from bankruptcy protection last year. His investment company also holds a 15% stake in Sears.
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