South African retailer Woolworths has made a $2.15 billion takeover bid for listed Australian fashion house David Jones, Herald Sun reported on Wednesday, a move that could make the Woolworth on of the 10 largest department stores operator in the world.

Woolworth, which operates a chain of retail stores in South Africa and owns Australian clothing label Country Road, has put forward a $4 per share takeover offer. The offer beats a merger proposal offered by rival Myer, which would have seen investors swap their David Jones’ shares for stock in the merged company.

The offer is subject to regulatory and shareholder approval at the Annual General Meeting in June.

“This is a compelling proposal which represents a significant premium to not only our intrinsic value but also to broker valuations and to recent share prices,” Herald Sun quoted David Jones chairman Gordon Cairns saying.

Shares in Australian Supermarket jumped by a quarter of its previous session close to trade $3.99 each when the market opened, as investors reacted to the news.

David Jones is turning around its performance after years of poor sales results. The company recently announced a 3.8 per cent rise in its half year sales, though its net profit dipped due to reduced earnings from its financial services division, which includes its store card and David Jones branded credit cards.

“This transaction provides us with the scale and opportunity to deliver significant benefits to our shareholders, and our customers in South Africa and Australia,” Herald Sun quoted Woolworths chief executive Ian Moir saying.

Woolworth is unrelated to the Australian supermarket giant with the same name. The Australian retailer Woolworths, clarified that it has nothing to do with the takeover bid.

“Woolworths Limited has never had any direct link with Woolworth South Africa,” The Australian quoted the company saying in a statement.