Department store Myer has come clean on reports it attempted to merge with its biggest rival.
Myer has confirmed it approached David Jones on October 28 2013, with a proposal to merge the two businesses.
The Board of David Jones decined the opportunity to engage with Myer on the proposal.
Myer has now released the full proposal, which was officially rejected on November 27, to shareholders.
According to the proposal, the merged company would have created more than $85 million in ongoing cost synergies within three years.
This would have reportedly resulted in more than $900 million of value to be shared by David Jones and Myer investors.
The combined group would have had sales of $5 billion and earnings before interest and tax around $364 million - before any savings - for fiscal 2013.
The proposal also stated the two department stores would continue to operate as separate brands.
In a statement to the market, Myer said the transaction would have enhanced competitiveness in a global market.
"The merger would have further assisted Myer's existing strategy in addressing the structural shifts in retail internationally, including consolidation, segment specialisation and the growing impact of online shopping on traditional department stores."
This strategy could have included expanding and licensing stores and private labels regionally and globally, as well as rolling out standalone merchandise and small format stores.