Staples Bids $2.1 Billion for ODP Corp, Parent of Office Depot

Reuters  |

(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 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 are up 15.3% to $42.62 at 10:45am ET.

Reporting by Nivedita Balu in Bengaluru; Editing by Bernard Orr.

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Source: Reuters

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