In its financial report for the third quarter ended late September, Office Depot’s parent said its retail division’s operating income was $119 million in the third quarter, up 42% over the same period of 2019. USR Parent Inc, or Staples, said it would offer US$40 for each ODP share, a premium of 8.2% to Friday's closing price. Staples Inc and Office Depot Inc Nix Merger Agreement. Staples is once again proposing to buy rival Office Depot in a $2.1 billion deal, five years after the US government squashed their prior merger agreement. They were last trading at US$43.85. In an offer announced Monday, Jan. 11 , Staples proposed to acquire 100% of the issued and outstanding common stock of The ODP Corporation (ODP), owner of Office Depot, for $40 per share in cash. Interestingly, it does not look like the companies are going to fight but bow their heads in surrender. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Office Depot’s parent has said that it’s open to a potential tie-up with Staples Inc., but only if it can avoid the regulatory pushback that derailed their last merger attempt. In 2016, the Federal Trade Commission blocked its offer of $6.3 billion. Quotes delayed at least 15 minutes. What A Merger Deal Between Staples And Office Depot Would Mean Defunct Retailers in the United States Staples is once again looking to buy Office Depot (ODP) in … News of the offer was first reported by Bloomberg and other financial news services. Staples had previously tried to purchase its rival in 2015. Amazon’s rise could help pave the way for Staples-Office Depot merger, finally Sycamore Partners proposes $2b deal to bring the office supplies giants together under one corporate roof . As part of its review, the board is evaluating the “potential antitrust and other regulatory challenges” given past regulatory decisions that blocked the merger of the two companies. In the meantime, ODP said its shareholders do not need to take any action, and that the company is focused on its strategy of expanding product sales to businesses. It is Staples’ second attempt in nearly five years to buy Office Depot. Offers may be subject to change without notice. Staples on Jan. 11 proposed to buy Office Depot’s parent, ODP Corp., for more than $2 billion or $40 a share. During the third quarter of 2020, the company closed 16 stores system-wide, ending the period 1,244 stores in its retail division. Staples had offered $40 per share for ODP, whose shares closed at $45.86 on Friday. The government said Staples held a 47% share of the business-to-business market for Fortune 100 companies, while Office Depot controlled 32%, and … Yesterday, Office Depot's parent company ODP turned down an acquisition offer from rival Staples for more than $2 billion, a 60%+ premium over ODP's average closing price in the 90 days leading up to the offer. In 2016, the Federal Trade Commission blocked its offer of $6.3 billion. Terms & Conditions. $1,400 stimulus checks are now one step closer to passing, Ivanka and Jared took a massive income hit in their final year at the White House, CA Notice at Collection and Privacy Notice, http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. Staples on Monday said it sent a letter to Office Depot's board of directors with a bid to take over its office supplies rival for $40 per share or $2.1 billion. Over the years, both Staples, which went private in 2017, and Office Depot have faced intense competition from non-traditional retailers such as Amazon and Wal-Mart. Five years ago, antitrust officials blocked a merger between the two companies and sent shares of … Suddenly, there was a big demand for computers, printers, paper and other accessories so workers could create a “home office” in dens and spare bedrooms across America. The DC source said when the Federal Trade Commission successfully sued to stop Staples in 2016 from buying Office Depot it did not focus on the retail market. They also continued to shrink their brick-and-mortar operations, closing stores and developing long-term plans to lay off more employees. Last March, Office Depot’s parent announced a five-year plan to slash its payroll by more than 13,000 workers. That was largely due to “strong demand for home office and cleaning/breakroom categories,” the company said in its report. © 2020 Fortune Media IP Limited. If Office Depot, OfficeMax and Staples become one company, … The purchase price was just shy of $1 billion in cash, and put Staples in … Staples’s private-equity owner Sycamore Partners this week proposed to buy Office Depot for $2.1 billion—a song compared to the $6.3 billion deal the … But the pandemic delivered a silver lining to the industry by creating a surge in remote working by Americans who were forced by their employers to work from home. From basic office supplies, such as printer paper and labels, to office equipment, like file cabinets and stylish office furniture, Office Depot and OfficeMax have the office products you need to get the job done.Maintain a well-stocked office breakroom.Save on printer ink and toner to keep your office efficient and productive. We should note it is important on several front – more merger arb funds will get whacked, FTC anti trust front, stock front, capital allocation etc. The Conservative Income Investor December 26, 2020 0 Comments “Time is the friend of the wonderful business.” The spirit of that famous sentence should be part of the touchstone inquiry before ever contemplating any type of investment. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices  BENGALURU (Jan 11): Office supplies retailer Staples on Monday offered to buy Office Depot owner ODP Corp for US$2.1 billion in cash, the retail giant's third attempt to take over its smaller rival. 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Prior to the coronavirus outbreak, the companies shifted their focus from consumers to building closer ties with businesses on the theory they could make more money on the sale of software and other services. The Boca Raton headquarters of Office Depot, whose parent has received a $2.1 billion offer to acquire the company from rival Staples. The parent company of Office Depot surged as much as 20% on Monday after Staples … “We are prepared to cooperate with ODP and its Board of Directors to sign a reasonable negotiated merger agreement, “ said Stefan Kaluzny, managing director of Sycamore Partners, in the offering letter. Florida FBI shooting: 55-year-old gunman lived under the radar, Jimmie’s Chocolates in Dania Beach permanently closes after 74 years; restaurant up for sale, Ex-Dolphins coach Jimmy Johnson tells critics to be patient with Tua Tagovailoa; weighs in on Deshaun Watson, Daniel Alfin: FBI agent investigated huge child pornography operation, How the FBI’s plan may have gone awry, leaving two agents dead, A ‘healthy’ doctor died two weeks after getting a COVID-19 vaccine; CDC is investigating why. Just as Office Depot appeared to be restoring its connection with consumers during the COVID-19 pandemic, rival Staples is reviving its takeover ambitions for the Boca Raton-based company, this time for $2.1 billion. The $40 … Under the terms of the deal, Staples will pay Office Depot … Palm Beach to weigh argument from neighbors who want him to go away. The $40-per-share offer price for Office Depot's parent company, ODP Corp., is a roughly 60% premium over … ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. Staples is once again offering to buy Office Depot, this time for $2.1 billion. There could be consolidation ahead in the office-products space, with Staples outlining Monday a proposal to acquire the parent company of Office Depot in a … This month Sycamore acquired another asset for Staples: Essendant, a $5 billion distributor of janitorial and breakroom supplies, office furniture, and tech and office-supply products. Staples has sought to buy Office Depot's parent company, ODP, two other times. In statements on Tuesday, both Staples and Office Depot said that they planned to move on from the failed merger. Susan Walsh/AP Photo. Staples said it currently owns about 4.9% of ODP’s common stock. The regulator said a merger could reduce competition for nationwide contracts for office supplies. New York (CNN Business) Staples is once again proposing to buy rival Office Depot in a $2.1 billion deal, five years after the US government squashed their prior merger agreement. ODP Corporation, Office Depot, office supplies, Staples, USR Parent Regaining Momentum in 2020 and Beyond Despite economic turmoil created by the COVID-19 pandemic, recent surveys show a clear trend of CFOs taking a long view when developing their international operations strategies and cross-border M&A plans. On Monday, Staples sent Office Depot's board of directors a proposal to acquire "100% of … The Staples-Office Depot Merger Terminated In Face of FTC Objection . Staples is looking to purchase competitor Office Depot – again. Staples just made its latest takeover bid for Office Depot — and it’s hoping the third time’s a charm. Office Depot took over OfficeMax, formerly headquartered in Naperville, in a $1.2 billion merger completed in 2013. In 2019, Office Depot moved to strengthen its e-commerce operation, setting up an alliance with Alibaba that allowed the company to sell products on the Chinese company’s website. … The backstory: stretches back to before "bitcoin" or … “Our intention is to commence a public, all-cash tender offer for 100% of ODP’s outstanding shares of common stock in March 2021 in the event we cannot reach a negotiated agreement with ODP.”, In its own statement Monday, the Boca Raton company said it had received the offer and that its board is “carefully reviewing the proposal” to see if it “is in the best interests of the Company and its shareholders.”. All rights reserved. Susan Walsh/AP Photo Staples has made a $2.1 billion cash offer to buy competitor Office Depot . Staples, whose planned merger with Office Depot failed in 2016, reported an offer for its retail stores in an SEC filing about going private. Can Trump legally live at Mar-a-Lago? Office Depot has rejected a proposed acquisition bid from Staples, parent company of Top 40 promo distributorship Staples Promotional Products (asi/120601), but is open to an alternative deal. FORTUNE may receive compensation for some links to products and services on this website. At the time, the Federal Trade Commission (FTC) blocked the merger, saying the combined company would control too much of the market. A view of the Office Depot store in Annapolis, Wednesday, March 25, 2020. Market data provided by Interactive Data. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Get updates on the coronavirus pandemic and other news as it happens with our free breaking news email alerts. As we reported earlier … this is the big news of the night. The Journal added that investors believe some kind of deal is likely, given the sharp run-up in shares of Office Depot since the Jan. 11 announcement. Workplace Depot has rejected one other takeover try by workplace provide rival Staples, in line with a letter despatched Tuesday by an organization government. Staples is once again proposing to buy rival Office Depot in a $2.1 billion deal, five years after the US government squashed their prior merger agreement. It is Staples’ second attempt in nearly five years to buy Office Depot. All Rights Reserved. “I think this would be easier to get through the FTC,” a DC antitrust source not involved in the merger told The Post. A Staples-Office Depot deal … Powered and implemented by Interactive Data Managed Solutions. In a letter Monday to ODP’s board of directors, Staples said it would consider sweetening its proposed offer if ODP were to sell off some of its operations such as its U.S. business-to-business unit. A view of the Office Depot store in Annapolis, Wednesday, March 25, 2020. Staples, which is now a privately held company controlled by the private equity group Sycamore Partners, threatened to start buying shares in March from other stockholders if ODP declines its bid. (Reuters) - Office supplies retailer Staples on Monday said it made an offer to buy Office Depot owner ODP Corp for $2.1 billion in cash, nearly five years after its second takeover effort was rejected. The shares of ODP Corp., which is Office Depot’s parent company, soared by 19.4% to $44.14 on the news in trading Monday, well above Staples’ $40 per share offer. Andrew Cuomo scorns COVID-19 advice from experts. Office Depot has had a brisk business selling personal protective equipment, including face coverings, safety goggles, and gloves to companies. 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