What A Merger Deal Between Staples And Office Depot Would Mean
01/11/21 AT 3:02 PM
Staples is once again looking to buy Office Depot (ODP) in a deal that is estimated to be valued at $2.1 billion in what would create one of the largest office supply chain retailers.
Staples made a previous attempt at purchasing Office Depot five years ago. In 2016, the $6.3 billion deal was called off due to antitrust concerns. Staples said in this go-around, it is ready to divest any of Office Depot’s commercial businesses that would help it gain regulatory approval from the Federal Trade Commission.
Operating under the corporate moniker USR Parent Inc., Staples sent a letter to Office Depot’s parent company ODP Corp. with its offer to purchase the chain. In the letter, it laid out its proposal, which included a plan for purchase at $40 per share in cash, which was 8.2% above Office Depot’s close price on Friday, Bloomberg reported.