Staples is trying to buy Office Depot for a third time, this time offering $2.1 billion in cash for the competitor
Stapleshas made a $2.1 billion cash offer to buy competitor Office Depot.
- It's the office supply chains third attempt to buy its competitor after previous offers were rejected by regulators.
- Shares of ODP, which owns Office Depot, surged 15% in trading Monday.
In a letter to ODP's board of directors, Staples owner USR Parent said it would pay $40 per share for the competitor, representing a 61% premium over the stock's average over the past 90 days.
The US 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.
Read more: Leaked memos reveal why office supplies stores like Staples and Office Depot say they are 'essential' businesses and staying open amid coronavirus shutdowns
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 surged more than 15% in trading Monday following the offer.
- Elizabeth Holmes ordered dinners for Theranos staff but made sure they weren't delivered until after 8 p.m. so they worked late: book
- My twin and I were in separate classrooms in school. Our joint math lesson made me realize how silly that was.
- 2,000 years before 'manscaping' and smooth armpits, the Romans were seriously into hair removal, archaeological findings show
- Small Size Bluetooth speakers in India
- IIT Madras tops Indian institute ranking fifth year in a row – here are the top 10
- Best tablets under ₹5000 in India
- Speedy, small loan market sees Muthoot Microfin make an entry
- Best budget headphone for work from home in India