September 26, 2016
Reuters reported on the sale to the investment company of Office Depot’s European operations, with the US retailer refusing to “disclose a deal value” but stating that the deal would be “structured as an equity sale for ‘nominal consideration’”. The company had reported in May that it was exploring “strategic alternatives”, even before seeing its merger with Staples blocked in June after the Federal Trade Commission (FTC) had filed a lawsuit to block the $6.3 billion (€5.8 billion) merger last year.
The European business, Reuters stated, brings in annual sales of around €2 billion ($2.5 billion), with the deal “subject to consultation with the central works council, which represents employees in France, besides regulatory clearances”. Should the deal not go through, if Office Depot “doesn’t exercise its option to sell after consultations within the prescribed times” or if it “fails to participate in the consultation process”, it will have to pay Aurelius €5 million ($5.62 million).
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