(NEW YORK) — Office Depot has agreed to buy OfficeMax in a billion dollar deal meant to challenge Staples, the country’s dominant office supplies chain.
It’s a move that could also mean store closures and layoffs, as many of the roughly 2600 Office Depot and OfficeMax locations overlap.
“In the past decade, with the growth of the Internet, our industry has changed dramatically. Combining our two companies will enhance our ability to serve customers around the world, offer new opportunities for our employees, make us a more attractive partner to our vendors, and increase stockholder value,” said Office Depot CEO Neil Austrian.
In announcing the merger, the companies said “OfficeMax stockholders will receive 2.69 Office Depot common shares for each share of OfficeMax common stock.”
Analysts say consolidation was inevitable. Offices are increasingly digital, meaning less demand for pens and file folders.
Copyright 2013 ABC News Radio
Madison Park, Keith Allen and Andreas Preuss, CNN