Staples $6 billion Office Depot buyout creates opportunity

Staples is purchasing Office Depot in more than a $6 billion cash-and-stock deal, this will create the largest office supply retailers in the world.

The transaction value of $6.3 billion will see Office Depot shareholders receiving 0.2188 of a share in Staples Inc and $7.25 in cash, which adds up to a nicely sum of $11 per share as reported by Reuters.

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Staples market value sits at $11 billion, with Office Depot being valued at $4 billion. This is a deal that will probably be looked over by antitrust regulators.

It was back in 2013 when the FTC said yes to Office Depot buying OfficeMax for a sum of $976 million. This is when Office Depot and OfficeMax merged as one where OfficeMax moved to Boca Raton, Fla.

By the end of 2015 Staples said it would close 225 of its stores because office supplies are being used less, with more people shopping online more than going to the store. It was in 1997 the FTC stopped Staples’ purchasing Office Depot for $4.6 billion because it could of impaired competition.

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So we had Staples, Office Depot and OfficeMax, then Office Depot purchased OfficeMax, then Staples purchased Office Depot to make one big company. This means great opportunity now when it comes to office supplies.

Many believe that healthy competition is great business, but where is Staples competition now in the office supply industry?

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