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Canadian Retailer Bids for Kaufhof

richard baker-corbis
Hudson Bay CEO Richard Baker is keen to expand into Germany.
  • Why it matters

    Why it matters

    Canadian retailer Hudson’s Bay Company could breathe new life into Kaufhof, a major German department store chain.

  • Facts

    Facts

    • Hudson’s Bay Company submitted a preliminary bid to Kaufhof’s parent company Metro that is believed to amount to almost €3 billion.
    • René Benko, the owner of rival German retailer Karstadt, is reported to be considering a similar offer with a view to merging his group with Kaufhof.
    • Hudson’s Bay started out as a “Company of Adventurers” with a licence from English King Charles II and at one point owned a third of Canada’s territory.
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    Audio

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U.S.-Canadian department store chain Hudson’s Bay has submitted a preliminary offer for German retailer Kaufhof, company sources told Handelsblatt.

Talks last week between Hudson’s Bay Chief Executive Richard Baker and Olaf Koch, the head of trading giant Metro, which owns Kaufhof, appear to have produced an agreement.

The offer is rumored to be similar in size to that being considered by rival bidder René Benko, the owner of German department store chain Karstadt: just under €3 billion, or $3.34 billion. The two potential buyers are likely to have differing plans for Kaufhof.

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