Jan 19, 2021
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About this Deal
Office supply chains Office Depot and Staples could soon be one and the same as far as shoppers are concerned.
The company that owns Office Depot and OfficeMax disclosed Tuesday that it had rejected an unsolicited takeover offer from the company that owns Staples. But it said it's open to an alternative deal, including combining their retail operations.
The ODP Corporation, the parent company of Office Depot, released a letter detailing its response to the offer by Sycamore Partners unit USR Parent, the private equity owner of Staples.
Staples has offered to buy ODP outright, but ODP said that offer is fraught with potential regulatory issues. A federal judge blocked a tie-up of Staples and Office Depot in 2016 after regulators objected.
"We are open to combining our retail and consumer-facing ecommerce operations with Staples under the right set of circumstances and on mutually acceptable terms," ODP Chairman Joseph S. Vassalluzzo wrote in the letter.
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Outside entrance to Office Depot, with logo above the archway
ODP also suggested a potential joint venture as an alternative arrangement.
Staples had offered $40 per share for ODP, whose shares closed at $45.86 on Friday.
If Office Depot, OfficeMax and Staples become one company, it's unclear whether there would be any store closures or name changes.
Staples did not immediately respond to a request seeking comment. Sycamore acquired Staples in 2017 and took the retailer private.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.