Federated Department Stores Inc. on Monday said it would buy rival May Department Stores Co. for $11 billion in a deal that would combine Bloomingdale’s, Macy’s and Marshall Field’s to create the largest U.S. department store chain.

The deal values May, which also operates Lord & Taylor, Robinsons-May, Filene’s and Hecht’s, at $35.50 a share, based on the 10-day average of Federated stock through Friday, the companies said.

The combined company would operate more than 900 department stores, as well as David’s Bridal stores and After Hours formal wear stores.

*For more on this story,

read the full Associated Press article

.