Sears and K-Mart Tie the Knot

Kmart Holding Corp. and Sears, Roebuck and Co. announced a merger agreement Wednesday that will create the nation’s third-largest retail company, called Sears Holdings Corporation.

The companies said Sears Holdings will have approximately $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores. It will be headquartered in the northwestern Chicago suburb of Hoffman Estates, but will maintain a “significant presence” in Troy, Mich., where Kmart is based.

Under the agreement, which was unanimously approved by both companies’ boards of directors, Kmart shareholders will receive one share of new Sears Holdings stock for each Kmart share. Sears, Roebuck shareholders can choose $50 in cash or half a share of Sears Holdings stock in a deal valued at $11 billion.

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