What: Australian retail giants Myer and Premier Investments finalise their A$864 million merger, with shareholders overwhelmingly supporting the deal that will integrate Premier's fashion brands into Myer's operations, while making Solomon Lew the largest shareholder with a 27% stake.

Why it is important: The consolidation represents a significant shift in Australian retail, combining Myer's department store expertise with Premier's fashion brand portfolio to achieve greater market presence and operational synergies.

The merger, approved by over 96% of Myer shareholders and 99% of Premier shareholders, will integrate Premier's fashion brands including Just Jeans, Dotti, Jay Jays, Portmans, and Jacqui E into Myer's network of 56 stores. This consolidation expands the combined entity's presence to more than 780 locations across Australia and New Zealand. The deal marks the end of a contentious relationship that began in 2017 when Premier started acquiring Myer shares, with Solomon Lew previously criticising Myer's management and performance. Premier, which already held a 31% stake in Myer, will see its chairman Solomon Lew emerge as the largest shareholder with approximately 27% ownership. The announcement impacted both companies' stock prices, with Myer shares rising 2.8% while Premier's stock declined 1.7%.

IADS Notes: The Myer-Premier Investments merger represents a significant consolidation in Australian retail. Following Myer's strong performance and amid its digital transformation, this A$864 million deal combines Myer's department store expertise with Premier's fashion brands. The merger, which ends a long-standing conflict between the companies, aligns with broader trends of retail consolidation to achieve scale and synergies.

Australian retailers Myer and Premier Investments merge