n aggressive Kmart, an iconic name in big-box retailing, acquired the once-dominant Sears department store chain in a surprising $11 billion gamble. With this buy-out Kmart hopes to give Wal-Mart and other biggies some competition.

Led by Kmart Holding Corp chairman Edward Lampert, the new Sears Holdings Corp would be USA�s third largest retailer. Both chains are expected to survive, but several hundred stand-alone Kmarts throughout the country are slotted to be transformed into Sears stores. The aim is to kickstart sales away from the shopping malls, which have been the traditional base for Sears. The new company is expected to rake in $55 billion in annual revenues through 3,500 outlets. Under the agreement, which was unanimously approved by both companies' boards of directors, Kmart shareholders will receive one share of new Sears Holdings common stock for each Kmart share. The deal also means that the company will trail only Wal-Mart Stores Inc and Home Depot Inc among the biggest US retailers.... more