The owners of JCPenney have made an offer to acquire rival Kohl’s in a deal that could value the department-store chain at upwards of $8.6 billion. Under the proposal, shopping-mall giant Simon Property and Canada-based Brookfield Asset Management — which together pulled JCPenney out of bankruptcy in December 2020 — have offered to acquired Kohl’s for $68 a share. Sources say that the plan is for JCPenney’s corporate parents to continue to maintain two separate brands while streamlining operations and cutting costs. The bidders’ plan for Kohl’s is to slash costs by $1 billion over the next three years. Kohl’s, based in Wisconsin, put itself up for sale earlier this year at the urging of activist investors Macellum and Engine Capital, who were unhappy with the direction of the company. Private equity giants Sycamore Partners and Leonard Green & Partners as well as Saks Fifth Avenue’s Canada-based parent company Hudson’s Bay are reportedly interested in acquiring Kohl’s.
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