Home / Knowledge / News / Apparel/Garments / Myer confirms approaching David Jones with merger proposal
Myer confirms approaching David Jones with merger proposal
Jan '14
Myer confirmed, in response to media speculation and a subsequent ASX and media release by David Jones, that it approached David Jones on 28 October 2013 with a proposal to merge the companies to create a sustainable, more competitive retailer, and provide growth opportunities for the combined business.

Myer believed such a merger would have delivered compelling value for the shareholders of both companies, as well as providing strategic opportunities to grow both brands.

The Board of David Jones declined the opportunity to engage with Myer on the proposal.

Myer has for some time been reviewing and implementing a range of strategic initiatives to strengthen the company’s competitiveness, and has made good progress in seeking to best position the business to adapt to a changing retail environment.

As part of this review one option considered was a merger with David Jones and significant analysis was undertaken over an extended period leading to an approach being made. The confidential, non-binding, indicative proposal was conditional and also subject to regulatory approvals, due diligence and the unanimous recommendation of the David Jones Board in support of the transaction.

The proposal had a number of fundamental features, including:

The merged company would have operated Myer and David Jones as separate, iconic department store brands that would have been better equipped to compete effectively in the changing retail market;

Myer and David Jones would have been more clearly differentiated and the two brands would have provided an enhanced merchandise assortment, brand portfolio, and exclusive and private label offering, meaning the company would have appealed to a broader customer base and given customers greater choice and a better shopping experience;

The merged company would have generated pro forma sales and EBIT in FY2013 of approximately $5.0 billion and $364 million, respectively, before any cost synergies;

Based on analysis conducted at the time Myer expected that a merger could have achieved more than $85 million of ongoing annual cost synergies within three years, creating the potential for more than $900 million1 of value to be shared by Myer and David Jones shareholders; and

The merger could also have provided opportunities to maximise the value of David Jones’ property assets for shareholders.

Click here to read more


Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search