Hudson's Bay Co. has signed an agreement with Saks Fifth Avenue, to buy over the latter for $16 per share, reports say. The transaction, expected to be worth $2.9 billion, is likely to close by year-end, subject to some approvals, reports add.

This new endeavour is seen to be a convergence of three iconic brands - Saks, Lord & Taylor, and Hudson’s Bay under one umbrella, culminating into a North America’s leading fashion retailer. With the three together, there will be a total of 320 stores in operation, including 179 full-line department stores, 72 outlet stores and 69 home stores, across U.S. and Canada, and three e-commerce sites. Hudson Bay expects to achieve $97 million in annual synergies within three years, reports suggest.

Hudson Bay believes this step will strengthen its growth potential in U.S. and Canada, and create efficiencies of scale, and add to its real estate portfolio, ultimately delivering value to its shareholders.