Mosaic to buy £353m Rubicon

Fashion group Mosaic is to buy high street rival Rubicon Retail. The merger will create one of the UK's largest women's clothing groups.

Mosaic Fashions owns several high street chains, including Oasis, Whistles and Karen Millen and Rubicon owns Principles, Warehouse and The Shoe Studio.

Reykjavik-listed Mosaic is set to pay£353 million for Rubicon. Most of the Rubicon business is owned by the management, although Icelandic companies Baugur and Kaupthing also own shares.

Rubicon reported an EBITDA of£46.7 million for the year to January 31. Total revenue was£408.5 million.

The enlarged company, which will trade under the Mosaic name, will have 1,700 stores in 27 countries. Each brand will retain its individual identity.

Mosaic chief operating officer Derek Lovelock said: 'This compelling transaction would give the combined group an even stronger position in the UK retail sector, as well as providing significant opportunities for future growth internationally.'

The deal is subject to Mosaic shareholder approval.