The tie-up between Myer and Premier Investments' five apparel brands will take place within days after shareholders for both retailers gave their overwhelming approval.
Myer Holdings shareholders approved the combination on Thursday with 96.2 per cent of votes cast, while Premier Investments shareholders gave their blessing with 99.96 of shares cast in favour.
"We are delighted with the strong backing from Myer shareholders for the combination with Apparel Brands," said Myer executive chairwoman Olivia Wirth, who called it one of the most significant transactions in the company's 125-year history.
"The combination will transform the Myer Group, creating a more resilient business with diversified earnings."
The votes mean that Premier Investments' Apparel Brands - consisting of 719 stores operating under the Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E brands - will become part of the Myer Group, which currently has 64 department stores.
The combined group will have 783 stores and more than 17,000 team members.
Ms Wirth said that Myers' category offering and brands and strength in loyalty, data and ecommerce will benefit the Apparel Brands business, while their experience in product development, design and outsourcing would uplift Myer.
Myer is issuing 890.5 million new shares to Premier shareholders, who will own 51.5 per cent of the new Myer Holdings once the transaction is completed.
Existing Myer shareholders will own 48.5 per cent.
The transaction will be completed on Sunday, a Myer spokesman said.
Premier Investments will be left with its back-to-school chain Smiggle and sleepwear retailer Peter Alexander - as well as a considerable stake in Myer and a 25.5 stake in Breville, the small electrical appliance retailer.
Premier chairman Solomon Lew will take a seat on the Myer board.
