Saks Fifth Avenue's parent company expected to purchase rival Neiman Marcus

The parent company of Saks Fifth Avenue is going to purchase its rival Neiman Marcus for $2.65 billion, according to reports. 

The new entity would comprise the Saks Fifth Avenue and Saks OFF 5TH brands and Neiman Marcus and Bergdorf Goodman assets, and be called Saks Global.

This deal was announced Thursday.

Saks Fifth Avenue currently runs 39 stores in the U.S., according to The Associated Press. 

Saks and Neiman Marcus have both struggled financially in the past, especially during COVID-19 where many private businesses had to shut down in 2020.

The two companies have had rivalries when it came to luxury brands. According to the AP, this deal could help reduce operating costs.