Brazil's two largest e-commerce websites Americanas.com and Submarino on Thursday announced that they were negotiating a merger.

The new company, currently under negotiations, will be called B2W Global Retail Company, whose estimated market value will succeed six billion reals (2.78 billion U.S. dollars), they said.

B2W will be launched with the combined gross revenues of about 1.6 billion reals (740 million dollars), and its annual revenue is expected to reach 2 billion reals (926 million dollars).

According to negotiators, the Lojas Americanas Group will hold 53.25 percent of the shares of B2W, while Submarino will have 46.75 percent.

The merger is expected to be concluded by the end of 2006.