Blog Publisher’s comment:
Well, I’m certain that this merger will
reduce the number of stores they operate and, with that, the number of “copy
centers” they operate.
reduce the number of stores they operate and, with that, the number of “copy
centers” they operate.
– – – – – – – – –
Office Depot
Merger With OfficeMax Wins U.S. Approval
Merger With OfficeMax Wins U.S. Approval
Bloomberg News –
By David McLaughlin – Nov 1, 2013 11:54 AM ET
By David McLaughlin – Nov 1, 2013 11:54 AM ET
Office Depot Inc. (ODP)’s purchase of OfficeMax Inc.
(OMX) won approval
from U.S. antitrust regulators, clearing the way for the office-supply
companies to create a single retailer to compete with Staples Inc.
(SPLS)
(OMX) won approval
from U.S. antitrust regulators, clearing the way for the office-supply
companies to create a single retailer to compete with Staples Inc.
(SPLS)
The U.S. Federal
Trade Commission voted to close its seven-month investigation into the merger,
saying online retailing ensured competition in the market for office supplies,
according to a statement today.
Trade Commission voted to close its seven-month investigation into the merger,
saying online retailing ensured competition in the market for office supplies,
according to a statement today.
The agency said
the market has changed significantly since 1997, when it derailed Staples’s
acquisition of Office Depot as anticompetitive.
the market has changed significantly since 1997, when it derailed Staples’s
acquisition of Office Depot as anticompetitive.
Consumers today
rely on retailers such as Wal-Mart Stores Inc. (WMT) and online shopping for office
supplies, the commission said.
rely on retailers such as Wal-Mart Stores Inc. (WMT) and online shopping for office
supplies, the commission said.
“The current
competitive dynamics are very different,” the FTC said. “The commission’s
investigation shows that today’s market for the sale of consumable office
supplies is broader.”
competitive dynamics are very different,” the FTC said. “The commission’s
investigation shows that today’s market for the sale of consumable office
supplies is broader.”
Office Depot and
OfficeMax, the second and third largest office-supply chains in the U.S.,
agreed in February to combine in a $1.17 billion deal after losing sales to online rivals and to
Staples. They said the merged company would have combined revenue of about $18
billion as of the end of 2012 compared with more than $24 billion in sales for
Staples, the largest office-supplies chain.
OfficeMax, the second and third largest office-supply chains in the U.S.,
agreed in February to combine in a $1.17 billion deal after losing sales to online rivals and to
Staples. They said the merged company would have combined revenue of about $18
billion as of the end of 2012 compared with more than $24 billion in sales for
Staples, the largest office-supplies chain.
OfficeMax, based
in Naperville, Illinois, rose 3.6 percent to $15.52 at 11:08 a.m. in New York, and
Office Depot, based in Boca Raton, Florida, rose 2.9 percent to $5.75. The
retailers said in a statement today that they plan to close the merger on Nov.
5.
in Naperville, Illinois, rose 3.6 percent to $15.52 at 11:08 a.m. in New York, and
Office Depot, based in Boca Raton, Florida, rose 2.9 percent to $5.75. The
retailers said in a statement today that they plan to close the merger on Nov.
5.
‘New Beginning’
“This merger
represents a new beginning for Office Depot and OfficeMax — one that will
enable us to create a stronger, more efficient” company, Office Depot Chief
Executive Officer Neil Austrian said in a statement.
represents a new beginning for Office Depot and OfficeMax — one that will
enable us to create a stronger, more efficient” company, Office Depot Chief
Executive Officer Neil Austrian said in a statement.
Framingham,
Massachusetts-based Staples may benefit from the deal, Fitch Ratings said in a research note Oct. 2.
Disruption from the combination should help Staples retain existing contract
customers and win new customers from Office Depot and OfficeMax, Fitch said.
Any store closures would also reduce excess square footage in the sector,
according to the note.
Massachusetts-based Staples may benefit from the deal, Fitch Ratings said in a research note Oct. 2.
Disruption from the combination should help Staples retain existing contract
customers and win new customers from Office Depot and OfficeMax, Fitch said.
Any store closures would also reduce excess square footage in the sector,
according to the note.
ALEX
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2013-10-31T16:44:00Z
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To contact the
editor responsible for this story: Michael Hytha at mhytha@bloomberg.net
editor responsible for this story: Michael Hytha at mhytha@bloomberg.net
Reprographics 101 
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