Saks Fifth Avenue AND Neiman Marcus are teaming up to create a luxury retail chain — and Amazon also has a stake in the deal.

Saks owner HBC announced $2.65 billion acquisition and new retail powerhouse known as Saks Global in a press release on Thursday.

Saks Global combines two department giants, discount store Saks Off 5th and high-end retailer Bergdorf Goodman, which Neiman Marcus owns.

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Amazon will serve as an investor in Saks Global to “innovate on behalf of customers and brand partners,” according to the release.

The long-speculated merger gives the combined entity greater negotiating power with luxury brands such as LVMHwhich have returned to direct-to-consumer sales amid declining interest in department stores, CNN reported.

“This is an exciting time in luxury retail, with technological advances creating new opportunities to redefine customer experienceand we look forward to unlocking significant value for our customers, brand partners and employees,” Richard Baker, executive chairman and CEO of HBC, said in a statement.

The announcement also brings a reshuffle in executive roles, with Saks.com CEO Marc Metrick stepping up as CEO of Saks Global. Ian Putnam will manage the group's property and investment division, with both reporting to Baker, the newly appointed chief executive.

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However, regulatory scrutiny looks like a potential challenge. In Aprill, Federal Trade Commission Trapped tapestrywhich owns Coach, from the acquisition of Michael Kors' parent company, Capri.