UPDATE 5-Saks owner buys Germany's Kaufhof chain for 2.8 bln euros
* Sale price 2.82 bln euros including some liabilities
* Includes German Kaufhof stores, Belgian Galeria Inno
* Positive impact on earnings (EBIT) seen at 700 mln euros
* Hudson's Bay pledges to keep all Kaufhof staff (Adds Breakingviews link)
By Matthias Inverardi
DUESSELDORF, Germany, June 15 (Reuters) - Hudson's Bay Co is buying Germany's leading department store chain, Kaufhof, from Metro for 2.8 billion euros ($3.2 billion), giving the Saks owner a launch pad to expand into Europe.
The deal, the largest German inbound M&A this year, comes as department stores start to enjoy a revival by investing in ecommerce in tandem with revamped flagship stores.
Hudson's Bay, whose shares rose as much as 13.4 percent, said it would sell at least 40 of Kaufhof's owned or partially owned properties to its real estate joint venture with Simon Property Group for at least 2.4 billion euros.
The company said it expects to fund the Kaufhof deal from the proceeds of the sale of the real estate. Hudson Bay said it does not intend to issue equity and expects to incur limited additional debt. Continued...