Staples buys Office Depot for $6 billion

Staples is buying Office Depot in a $6 billion deal that will spawn an office-supply mega-chain, The Associated Press reports.

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In the cash-and-stock deal, which totals $6.3 billion, Office Depot Inc. shareholders will receive $7.25 in cash and 0.2188 of a share in Staples Inc. Office Depot is valued at $11 per share.

According to a company statement, Staples said it is expecting to generate at least $1 billion of annualized cost synergies and aggressively reduce global expenses by the third full fiscal year post-merger.

With the acquisition, which is expected to close by the end of the year, Staples will have pro-forma annual sales of approximately $39 billion. Read more...

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