(Reuters) -Dick's Sporting Goods has agreed to buy smaller rival Foot Locker ( FL ) for $2.4 billion, the companies said on Thursday.

Shares of Foot Locker ( FL ) surged 75% to $22.50 premarket after the announcement, while Dick's Sporting fell 9%.

The sporting goods retailer has offered $24 per share of Foot Locker ( FL ), representing an 86% premium to the stock's last close. Foot Locker ( FL ) has lost about 40% of its value so far this year.

The deal follows a $9.42 billion buyout of Skechers by private equity company 3G last week, as businesses attempt to navigate the global trade uncertainties sparked by the Trump administration.

The Wall Street Journal was the first to report on the potential Foot Locker ( FL ) deal after markets closed on Wednesday.

(Reporting by Savyata Mishra in Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)