Ian Ritter is national online editor for GlobeSt.com/RETAIL.

CINCINNATI-Federated Department Stores and May Department Stores, two of the biggest players in their sector, are merging in an $11-billion deal. The combined companies, to be controlled by Federated management, which is based here, will operate just over 950 department stores across the country. May is headquartered in St. Louis.

The deal will bring such heralded department store chains, such as Lord & Taylor, Macy's and Marshall Field's, under one ownership. Federated, which is converting its regional department-store chains into Macy's units this year, will also do so with a portion of the May portfolio, says Terry J. Lundgren, Federated's chairman, CEO and president.

Federated will assume $6 billion in May debt as part of the transaction. May shareholders will receive $17.75 per share in cash as well as 0.31 shares of Federated. Completion of the deal hinges on regulatory and shareholder approval. Officials at the companies expect to close the merger in the third quarter.