After months of negotiations, Hudson's Bay Company's Saks Fifth Avenue inked a deal on Wednesday to buy longtime rival retailer Neiman Marcus for $2.65 billion. The combined company, to be called Saks Global, is likely to become a major player in luxury retail.

The joint venture will have annual sales of about $10 billion, according to the Wall Street Journal. report.

HBC, which acquired Saks in 2013, recorded sales of about $3 billion in its first year and about $6 billion last year, according to the outlet. Neiman Marcus' sales in 2013 were $4.7 billion, according to the outlet.

Exclusive: Saks to merge with Neiman Marcus for $2.65 billion with Amazon backing https://t.co/OcVusdb5B0 https://t.co/OcVusdb5B0

— The Wall Street Journal (@WSJ) July 3, 2024

Amazon, which was instrumental in driving the deal, will take a minority stake in Saks Global and provide technology and logistics support. Salesforce will also take a minority stake and help the new company integrate artificial intelligence. Mark Metrick, CEO of Saks' e-commerce business, will lead Saks Global, the media outlet reported. (Related article: Two U.S. airlines scrap merger deal that could have created the nation's fifth-largest airline)

HBC plans to raise $2 billion from existing investments to fund the merger. Investors include Rhone Capital, Abu Dhabi Investment Council, HBC Chairman Richard Baker's private equity firm NRDC Equity Partners and Baker's son Jack Baker. Apollo Global Management is also planning to add $1.15 billion to the debt financing, the Journal reported.

Luxury sales have declined recently since the big post-pandemic spending surge halted: Bain & Company said luxury purchases in the Americas fell 8% in 2023 compared to 2022, the magazine reported.