Cincinnati, OH, July 13--Federated Department Stores and May Department Stores are looking to have their merger in place in time for the holiday shopping season.
"We are expecting it to close in the third quarter, between August and October," Federated spokeswoman Jamie Carr said.
Shareholders in both companies were expected to finish voting Wednesday on the proposed creation of a retail giant with nearly 1,000 department stores and $30 billion in annual sales. St. Louis-based May would become a Federated division.
Both companies set annual meetings for Wednesday; May's in New York City, Federated's in Cincinnati. Even after shareholder approval, the $11 billion deal will require Federal Trade Commission approval.
Burt Flickinger III, managing director for New York-based consultants Strategic Resource Group, said the two companies offer "a very responsible retail plan. ... They should get complete regulatory approval."
Federated has about 112,000 employees and more than 450 Macy's and Bloomingdale's stores in 34 states, Guam and Puerto Rico. May -- operator of Lord & Taylor, Famous-Barr, The Jones Store, Filene's and other regional department stores -- has 132,000 employees in 46 states, the District of Columbia and Puerto Rico. Some stores would be rebranded as Macy's after the merger becomes final.
The extended national scope is expected to help Federated better compete with Wal-Mart Stores Inc. and upscale retail merchants.
Flickinger said prospects for the combination of the companies' top stores "will be phenomenal."
Wednesday's shareholder meeting at Federated marked the second consecutive day for a Cincinnati-based company vote on a major merger. Procter & Gamble Co. shareholders Tuesday overwhelmingly approved the proposed acquisition of Gillette Co.
