Hudson Bay to take over Kmart in Canada

The Hudson Bay Company announced Friday it will take over Kmart Canada. The deal will cost the company $240 million, and could cost workers as many as 6,000 jobs.

The Bay, already Canada's largest retailer, will merge the management teams of its Kmart and Zellers Canada discount store operations. The deal is subject to regulatory approval.

If it goes ahead, most of the stores in the new discount chain will operate under the Zellers name. A few will be converted into Bay outlets. Some stores will be closed.

Kmart, is the third-largest discount department store chain, but has faced increased competition in recent years. It announced late last year it would close 10 stores and lay off more than 1,000 employees.