Dive Brief:
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After months of speculation and reports of discussions, Staples and Office Depot announced Wednesday that Staples would acquire its rival for $6.3 billion in cash and stock.
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If the deal passes muster with the Federal Trade Commission, it will combine the two largest office-supply retailers. If left largely untouched by the FTC, the merged company will operate some 4,400 stores and have sales of $34 billion.
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The development is further evidence of the muscle of activist investor Starboard Value, which has been pushing hard for the merger for months.
Dive Insight:
The Federal Trade Commission years ago nixed a merger deal between these two office-supply giants. But times have changed, despite the fact that Office Depot has since also gobbled up rival chain Office Max last year. E-commerce and increased office-supply offerings at general retailers has a lot to do with the FTC’s likely change of heart. Still, although many expect the deal to be approved, it will likely draw intense scrutiny from the anti-trust office.