01.11.21 - Office supplies retailer Staples stated on Monday that it had made an offer to buy Office Depot parent company ODP Corp for $2.1 billion in cash, just five years after its second acquisition 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 an 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 rose about 11% to $41 before the opening bell.
Source: Financial Times