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.
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.
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