Staples Agrees To Buy Office Depot for $6.3bn

Staples (NasdaqGS: SPLS - news) , the top US office supplier, is buying nearest rival Office Depot (NasdaqGS: ODP - news) in a cash-and-stock deal valued at $6.3bn (£4.1bn).

Office Depot shareholders will receive $7.25 in cash and 0.2188 of a share in Staples at closing. The deal values Office Depot at $11 per share.

Staples said on Wednesday that it began talks to buy Office Depot in September. The deal, anticipated amid a Wall Street Journal report, is expected to close by the end of 2015.

Staples has a market capitalisation of approximately $11bn, while Office Depot has a market capitalisation of about $4bn.

Online retailers such as Amazon and superstore chains such as Wal-Mart Stores have eaten into the sales of office supply retailers.

Last month, activist investor Starboard Value LP called for Staples and Office Depot to merge, saying a combined entity would lead to greater cost savings.

Office Depot had combined with OfficeMax in a $1.2bn deal in November 2013.