The Recycler
  • https://www.ecs-uk-ltd.co.uk/partner-us?utm_source=tr-636x124-8&utm_medium=didiad
  • Biuromax Web banner June 2022
  • Static Control June 2022 Masthead Ad
  • Ninestar Web banner ESG July 2022
  • Katun March Web Advert 2021

Staples and Office Depot in merger talks

Staples and Office Depot in merger talks

February 4, 2015

Staples_store webOffice supplies retailers said to be in “advanced talks” regarding Staples acquiring Office Depot.

New York Times reported that according to “people with knowledge of the matter”, Staples and Office Depot are discussing joining forces in a merger that would see Staples acquire Office Depot, with the news following the merging of Office Depot and OfficeMax in 2013.

While it was noted that “talks were continuing and could still fall apart”, the article stated that “a deal could be announced as early as next week”; with activist hedge fund Starboard Value, which owns 10 percent of Office Depot and six percent of Staples, reportedly calling on the companies to merge “to better compete against the likes of Walmart and Amazon.com” as “a combined company would be able to cut costs while having increased size to compete with rivals”.

In a letter to Staples in January, Starboard reportedly stated that the recent strong performance of the company’s stock price meant that “this merger makes too much sense to ignore” and “it’s time for you to take action – engage advisors and work expeditiously with Office Depot to consummate a transaction”. The hedge fund also hinted that it “might wage a proxy fight to unseat Staples’ leadership” should no action be taken.

The two companies had previously tried to join forces in 1997, but it had been blocked by antitrust regulators. The article noted that this time the regulators may try to block the merger as “a combined company would control too much of the market”, although this consolidation may have been offset by the rise of e-commerce companies; with the Federal Trade Commission acknowledging during the Office Depot/OfficeMax merger that the competitive landscape had been altered by the “rise of alternative sources” for office supplies.

Should the deal go ahead, Staples and Office Depot would operate around 4,400 stores, with combined annual sales estimated to reach about $34 billion (€30 billion).

Categories : City News

Tags : Business Office Depot Staples

  • GPI July 2022 Web Banner
  • IR Italiana Web ad January 2021
  • Aster July 2022 Web banner
  • Apex UStation web banner
  • Mito July 2022 Web banner
  • Static Control June 2022 Big & Bold Ad
  • GM Technology July 2022 Web banner
  • CTS New Ad March 2022
  • PCL Web ad January 2021
  • Zhono web ad May 2022
  • HYB Web banner
  • CET June 2022 Web ad
  • ITP Web ad January 2021
  • CTS New Ad March 2022
  • PCL Web ad January 2021
  • ITP Web ad January 2021
  • CET June 2022 Web ad
  • HYB Web banner
  • Zhono web ad May 2022
  • HYB Web banner
  • ITP Web ad January 2021
  • CTS New Ad March 2022
  • Zhono web ad May 2022
  • CET June 2022 Web ad
  • PCL Web ad January 2021

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2021 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021