Boston, MA 11/04/2013 (wallstreetpr) – The merging proposal between Office Depot Inc (NYSE:ODP) and Office Max received the blessings from the United States of America Federal Trade Commission. Now the hard work and the heavy lifting have begun in order to reach the combined sales targets.
Office Depot Inc is considered to be the number 2 U.S. Office Supplying company where as Office Max is rated as Number 3 U.S. office supplying company. Both the companies have announced their plans of February to staple their working and fortunes together in a stock deal which is values at around $1.9 billion. Before providing the approval to the merger, the Federal Trade Commission has stated the merger as an “unconditionally cleared” but it is expected to get cleared and closing on November 5.
The combined company sales are expected to be around $17 billion, which is still less than the sales of Number 1 U.S. office supplying company called Staples Inc. The estimated sales of Staples Inc this year is around $23.5 billion.
Related to the information of the merger, the spokes person of Office Max, Julie Treon declined to provide any comments of information related to the joint companies’ consolidation and also the possible stores to be closed.
Office Depot Inc has around 1,300 stores where as Office Max has only 900 stores in the United States of America and Mexico.
The companies have also announced that in February the merger is expected to provide annual cost synergies of around $400 million to $600 million by the third year following the transactions close.
Talking about the latest trading session of Office Depot Inc, the overall trading of the shares was around 16.53 million shares.
Office Depot Inc and its subsidiaries supply and make office products and services.
