The Hindu Business Line : K-Mart to merge with Sears, Roebuck & Co

THE national discount retailer K-Mart is merging with another retail giant Sears, Roebuck and Company, with the so-called surprise combination becoming the third largest retail chain in the US after Wal-Mart Stores Inc and Target Corporation.

The creation of the new company, which will be called Sears Holdings Corp, was announced on Wednesday and is passed off as a $11-billion deal.

The new company is expected to have an annual revenue of $55 billion with 2,350 full-line and off-mall stores and more than 1,000 speciality retail stores.

Sears Holding Corp will continue to operate the K-Mart and Sears stores under the current brand names. It has been announced that the new company will be headquartered in the now Sears' northwest Chicago headquarters but will also have a substantial presence in Troy, Michigan, where K-Mart is based.

The merger, which is expected to be over by the end of March 2005, is subject to approval by the shareholders of K-Mart and Sears, regulatory approvals and customary closing conditions.

K-Mart filed for Chapter 11 bankruptcy protection in 2002 that led to the closing of some 600 stores and termination of services of more than 55,000 employees. The retail giant came out of bankruptcy in mid 2003 and even posted its first profitable quarter this March in three years, it in is being pointed out.

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