Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Staples offers to buy Office Depot owner's consumer business for $1 billion

Published 06/04/2021, 05:05 PM
Updated 06/04/2021, 05:13 PM
© Reuters. FILE PHOTO: Shopping carts are shown at an Office Depot Inc store in Encinitas, California, U.S., May 8, 2017. REUTERS/Mike Blake
ODP
-

(Reuters) -Staples said on Friday it had offered to buy Office Depot (NASDAQ:ODP) owner ODP Corp's consumer business for $1 billion, the latest effort by the office supplies retailer to acquire its rival's assets.

Staples offered about $18.27 per share for the business, which it said represents a premium of about 43% to the 30-day average closing price of ODP's stock as of June 2.

ODP said it is reviewing Staples' proposal with the assistance of its financial and legal advisors.

Shares in ODP closed up 11.2% at $49.56 on Friday, after hitting a near four-year high of $50.14 during the session.

© Reuters. FILE PHOTO: Shopping carts are shown at an Office Depot Inc store in Encinitas, California, U.S., May 8, 2017. REUTERS/Mike Blake

Last month, ODP said it would spin off its distribution platform, which schools, offices and other businesses use to buy supplies, into a separate company.

Staples is now proposing to buy ODP's unit that includes the Office Depot and OfficeMax retail store businesses.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.