The U.S. Federal Trade Commission blocked Staple’s $6.3 billion offer in 2016, saying a merger between the two could reduce competition for nationwide contracts for office supplies
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.
Office Depot jumps 20% after Staples offers to buy the company for $2.1 billion
Matthew FoxJan 12, 2021, 02:54 IST
A view of the Office Depot store in Annapolis, Wednesday, March 25, 2020.Susan Walsh/AP Photo
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Staples offered to acquire the company for $40 per share, or $2.1 billion.
This would be Staples third attempt at buying Office Depot in the last 25 years. In 2015, the FTC said Staples proposed acquisition of Office Depot for more than $6 billion would violate anti-trust law.
Staples went private in 2017 after it sold itself to Sycamore Partners.
The ODP Corporation, parent company of Office Depot, soared as much as 20% on Monday after Staples offered to buy the company for the third time in 25 years.