Department store retailer David Jones Limited
(ASX:DJS) has confirmed it is mulling a $3 billion potential merger with rival retailer Myer Holdings Limited
(ASX:MYR).
DJs has now reappointed a strategic adviser to review a possible merger while on the same day announcing director Leigh Clapham will leave the board immediately.
The company has appointed management consulting firm Port Jackson Partners to investigate the value of synergies which could be realised should the two companies merge.
New Chairman Gordon Cairns says it is imperative to undertake the review before entering talks with Myer so that it can then engage in a meaningful way.
Should talks between both companies progress David Jones says it would then undertake due diligence on Myer's business.
DJs has also confirmed it is on the hunt for two new non-executive directors as part of a board renewal process which started in mid-February.
David Jones reported a net profit of $95.2 million in the 2013 financial year.
