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On Monday, Office Depot and OfficeMax have agreed to merge. The collaboration can make a huge imprint on the office supply retail sector reaching a total of $21.2 billion as all stocks merge as well.
Those who hold OfficeMax shares will receive 2.69 shares of Office Depot for every OfficeMax share they attain, which equals about $13.50 per share, making the whole deal worth $1.2 billion, reported the Associated Press.
The deal that the two companies make is expected to be a stock-for-stock transaction, revealed a source, but he or she also warned that the deal was not set in stone as of yet, as stated in Reuters.
On Tuesday, Office Depot, based in Boca Raton, Florida, had stock that rose $2.25, or 21%, and Office Depot, based in Naperville, Illinois, rose up 43 cents, or 9.37%.
Analysts have also agreed that the merge could benefit Staples, the office supplies industry leader, because the collaboration will likely urge some stores to close.
Office Depot has 1,675 stores worldwide, and OfficeMax has around 900 stores in the United States and Mexico.