In a few years Canadian bargain hunters won’t have to cross the border to shop at Target.

A subsidiary of an iconic Canadian company is set to be purchased by the popular American retailer. Target plans to purchase the Hudson Bay Company's chain Zellers in a $1.8 billion (CDN) deal announced Thursday and expects to open its first stores north of the border in 2013.

"We believe our investment in these leases will strengthen the surrounding communities as well as create strategic and financial value for Target stakeholders," Target’s president and CEO Gregg Steinhafel said.

Under the agreement announced Thursday, Zellers stores will continue to operate as is, for a period of time, but will instead now be leasing the properties from Target. A “select number” of Zellers locations will also be sold off to other retail companies, HBC said. One of them is reportedly Walmart.

Target plans to open 100 to 150 stores across Canada in 2013 and 2014.

“Zellers Inc. will continue to operate a portfolio of certain Zellers stores in specific communities across the country,” HBC said in a release Thursday.

HBC Governor Richard Baker said this deal, in which Target obtained 220 Zellers leasehold sites, will allow HBC to invest more money into its department stores.

The Target-Zellers deal is expected to create approximately 20,000 net new jobs in Canada, HBC said. A typical Target store in the U.S. employs about 150 to 200 people.

The deal isn't just making news in Canada, "Zellers" was a top trending topic worldwide on Twitter Thursday morning.