Myer makes $845 million offer to acquire major retail company.

Myer, a well-known department store, has made a move to acquire a group of popular retail clothing brands, including Just Jeans and Jay Jays. This announcement was made today after Myer approached Premier Investments, a company owned by billionaire Solomon Lew. The deal would involve Myer acquiring Premier's Apparel Brands portfolio, which includes Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti. Combined, these brands have a total of 717 stores across Australia and New Zealand, and generated a significant revenue of $845 million last year.

The proposed acquisition would involve Premier receiving shares in exchange for the sale of its Apparel Brands portfolio to Myer. This would result in Lew becoming Myer's largest shareholder, although with a smaller share than what Premier currently holds. Additionally, Lew would also join Myer's board as part of the deal. Myer's new executive chair, Olivia Wirth, expressed excitement over the potential of acquiring these popular brands, stating that it would greatly benefit Myer's business.

Wirth explained that this move is part of Myer's strategic review and efforts to find new growth opportunities. She mentioned that Myer is considering both organic and inorganic investments that align with their focus areas and create value for shareholders. The proposed merger with Apparel Brands was a result of this thorough review, as it became clear that it would bring significant synergies and growth prospects to Myer.

Both Lew and Premier Investments have shown interest in the deal, although they would need to further consider the details. Premier stated that the proposed merger has the potential to greatly benefit both businesses, as it would increase Myer's scale and market position, create synergies, and drive sustainable earnings growth. Premier shareholders would also benefit from this deal, as they would become shareholders in Myer.

However, for the acquisition to go through, it would require approval from shareholders and boards of both companies, as well as regulatory bodies such as the ACCC and ASIC. Despite this, the announcement of the proposed merger has caused both Myer and Premier's share prices to rise significantly, by 20% and just under 7% respectively. This indicates that investors have a positive outlook on the potential of this deal.

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