Staples Agrees to Buy Office Depot for $6.3 Billion, Creating an Office-Supply Behemoth
If approved, the deal would combine the No. 1 U.S. office supplier with its closest rival, creating a new company with expected annual revenue of $39 billion.
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Office Depot has agreed to be bought by Staples for $6.3 billion. Together, the two biggest office-supply stores expect to bring in sales of $39 billion per year.
That's a lot of post-it notes. And pens. And printer paper.
To be sure, the deal -- announced today in a joint statement from Staples and Office Depot -- will face intense scrutiny from antitrust regulators. Indeed, the in 1997, federal regulators prevented Staples and Office Depot from merging, striking the deal down at the altar of competition.
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But, if this new deal does get the stamp of approval, Staples would become the force to be reckoned with in the office-supply space.
The two biggest office-supply stores started talking about the deal in September, according to the statement announcing the agreement. Working together, the companies would save $1 billion in otherwise repetitive costs, says Ron Sargent, Staples' chairman and CEO. With those savings, the merged retail juggernaut says it would work to move beyond just selling office supplies.
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As the two companies wait to hear whether their merger is approved by U.S. regulators, Office Depot will stay focused on merging its business with OfficeMax, yet another office-supply store that Office Depot bought in November of 2013.Related: Staples Data Breach May Have Hit More Than 1 Million Customers