The price and structure of the proposed deal
couldn't be learned and there is no guarantee a deal will be
reached, the newspaper reported. (http://on.wsj.com/1EC6niR)
Staples has a market value of about $11 billion, while Office
Depot has a market value of about $4.1 billion.
Last month, activist investor Starboard Value LP called for the
two companies to merge, saying a combined entity would lead to
greater savings.
A merger would help fend off intense competition from online
retailers such as Amazon.com Inc and big-box chains such as
Wal-Mart Stores Inc that sell the same core office supplies,
such as paper and ink toner, for less.
The combination of the two would likely get a close look from
antitrust regulators, the Journal said.
Office Depot and Staples were not immediately available for
comment outside regular U.S. business hours.
Regulators nixed Staples' attempt to buy Office Depot in 1997,
citing antitrust concerns.
The FTC approved Office Depot's $976 million acquisition of
OfficeMax in 2013 without the need to close stores, citing
increased competition in the office supply industry.
(Reporting by Supriya Kurane in Bengaluru; Editing by Gopakumar
Warrier)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
![](column_spacer.png) |
|