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Staples offers $2.1 billion cash to buy Office Depot parent

Published 01/11/2021, 08:52 AM
Updated 01/11/2021, 09:10 AM
© Reuters. An Office Depot Inc store is shown in Encinitas

(Reuters) - Office supplies retailer Staples on Monday said it made an offer to buy Office Depot (NASDAQ:ODP) owner ODP Corp for $2.1 billion in cash, nearly five years after its second takeover effort was rejected.

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.

The two companies agreed to merge in 1996, but the deal was put to rest as a government lawsuit argued the move would have meant higher prices for pens, paper and other office supplies.

Staples was a public company when it attempted the acquisition. It went private in 2017.

Staples said it is prepared to take "all necessary measures" to divest ODP's B2B Business to a FTC approved and qualified buyer.

USR Parent Inc, or Staples, said it would offer $40 per for each ODP share, a premium of 8.2% to Friday's close.

ODP's shares rose about 11% to $41 before the opening bell.

© Reuters. An Office Depot Inc store is shown in Encinitas

Latest comments

They will very likely get blocked again. The fed wants to have competitors. Without odp, staples has no competitor. Staples arguement was the internet is. Likely Fed will not take that the second time too.
Why though
There r still demand for prints,posters, a few paper clips, urgent office needs, etc from those stores for small businesses,schools,students
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