Office Depot rejects Staples acquisition offer but would consider merger of retail operations

Nathan Bomey, USA TODAY
·1 min read

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.

Rivals to merge?: Staples proposes buying Office Depot for $2.1 billion

Should you be gig worker in retirement?: Here's how to manage Social Security, savings

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.

This article originally appeared on USA TODAY: Office Depot rejects Staples acquisition bid but open to retail merger

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Melissa Barrera feels sense of closure with Scream character despite firing

    The In the Heights actress, who starred as Sam Carpenter in the fifth and sixth Scream films, was fired from Scream VII in November after the studio deemed some of her pro-Palestine social media posts to be antisemitic. Barrrera shared on Collider’s Ladies Night podcast that while she won't get to complete Sam's story with the seventh instalment, Barrera feels a sense of closure with her character's arc. “I feel I've gotten closure, yeah, my head is clear. I feel like the ending of (Scream) 6 was a very good ending…”

  • US House advances $95 billion Ukraine-Israel package toward Saturday vote

    The U.S. House of Representatives advanced a $95 billion legislative package on Friday providing aid to Ukraine, Israel and the Indo-Pacific in a broad bipartisan vote, overcoming hardline Republican opposition that had held it up for months. Friday's procedural vote, which passed 316-94 with more support from Democrats than the Republicans who hold a narrow majority, advanced a package similar to a measure that passed the Democratic-majority Senate in February. Democratic President Joe Biden, Democratic Senate Majority Leader Chuck Schumer, top Senate Republican Mitch McConnell and top House Democrat Hakeem Jeffries had been pushing for a House vote since then.

  • Streaming: Are consumers fed up with subscription costs yet?

    Streaming services have raised subscriptions costs in recent years with a potential for prices to keep increasing down the line. With inflation making its way through consumer goods and services, how are consumers feeling about these price increases? Will they continue to opt in to select services or should streaming companies like Amazon Prime Video (AMZN) be worried? D’Amore-McKim School of Business at Northeastern University Associate Dean of Research and Professor of Marketing Koen Pauwels joins Wealth! to give insight into how consumers are reacting to rising subscription costs from streaming providers.  "If you're the kind of consumer who is relatively price insensitive and you don't want to be bothered with ads and you want all of your shows to be on one kind of data provider so you don't have to lose the time to figure out which show is where, then you're going to settle [and] select for this ad-free tier," Pauwels points out, "which also means that Netflix (NFLX) can continue raising prices on that one because their pool of consumers choosing for this non-ad service is going to be more restricted, more selective who don't care about prices that much." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino

  • Thompson Golf Club Receives Generous Donation from TNRC for Junior Golf Program

    The Thompson Golf Club, located in the city of Thompson, Manitoba, recently received a generous donation of $5,000.00 from the Thompson Neighbourhood Renewal Corporation (TNRC) to support their Junior Golf Program for the 2023 season. The money was used to purchase various prizes for “Junior Day,” which was held every Monday afternoon, where children were treated to some golf, pizza, and prizes. The biggest purchase from the grant money was 12 sets of golf clubs. The sets were designed to cater

  • More info about new police board for Bruce Grey

    The new board which is the community liaison for the whole Bruce-Grey OPP detachment began as the new provincial policing act was proclaimed on Apr. 1. Right now, each municipality that OPP serves under Section 10 has its own board. BOARD MAY START LATE Southgate Police Services board met in March, and decided it will meet again for a wrap-up meeting on May 21. While the new provincial Act was proclaimed Apr. 1, due to transition challenges, the new board may not meet until May or June, said a r

  • Train driver who took photos up sleeping woman’s skirt spared jail term

    Paolo Barone, wearing his work uniform, repeatedly took photographs of the sleeping woman throughout his 45-minute rail journey.

  • Amazon shoppers dub this the 'most flattering T-shirt ever' — get it for under $20

    This top's fluttery petal sleeves and slightly oversized fit set it apart from the crowd, fans say.

  • Curbside recycling changes in Saint John will end nighttime collection

    Saint John will be rolling out a new curbside recycling program at the beginning of May that will see all residents putting their recycling out by 7 a.m. for collection, with no more nighttime pickup, as Miller Waste, a private company, takes over collection."The majority of the residents will also see a change in the day of the week in which they have the recycling collected," said Tim O'Reilly, director of public works for the city, adding there will be no change to garbage collection.The move

  • UPDATE 1-IMF committee acknowledges conflicts risk but opts against joint communique

    The International Monetary Fund's steering committee failed to issue a joint communique on Friday amid disagreements over wars in the Middle East and Ukraine, opting instead for a statement from the body's chair that acknowledged the economic risks posed by the conflicts. International Monetary and Financial Committee "members discussed the global macroeconomic and financial impact of current wars and conflicts including the war in Ukraine, the humanitarian crisis in Gaza, as well as the shipping disruptions in the Red Sea," Saudi Arabia's Finance Minister Mohammed al-Jadaan, the body's chair, said in a statement.

  • Major water users in southern Alberta agree to curb consumption in face of drought

    CALGARY — Major water users in southern Alberta have agreed to curb their consumption if there's a severe drought this spring or summer. Rebecca Schulz, the provincial environment minister, says it won't be known whether the agreements need to be acted upon until snowpack information comes in later this month. The Alberta government has announced water-sharing agreements covering four sub-basins — the Red Deer River, the Bow River, the mainstem of the Oldman River and upper tributaries of the Ol

  • AJ Simon, Albany defensive standout and NFL draft prospect, dies at 25

    Simon had visited with the Patriots ahead of next week's NFL draft.

  • Which countries have nuclear weapons?

    Nine countries currently have nuclear weapons – some legally and some illegally – with an estimated 12,100 warheads between them as of early-2024.

  • Insurance Stock Hits New Highs After 34% Gain Year To Date

    Insurance stock Progressive is at an all-time high after first quarter results. Shares have outperformed the S&P 500 with a 34% gain year to date.

  • Bomb threat evacuates Louisville zoo

    The zoo has been given the all-clear after police said it appears to be a ‘false call’

  • Province calls Gate Gourmet, striking airline catering workers back to bargaining

    The union representing striking airline catering workers says Ontario mediators have called them back to the table for talks with employer Gate Gourmet. About 800 food service staff at Toronto's Pearson airport went on strike Tuesday, leaving thousands of passengers without meals this week. The workers cook, package and deliver food and beverages to planes for service on board, with Air Canada and WestJet having to limit meal offerings after the job action. Teamsters Canada claims some long-haul

  • Rebel Moon 2 debuts with brutal Rotten Tomatoes rating

    Netflix's latest addition to the Rebel Moon franchise, Part Two: The Scargiver, has received a brutal Rotten Tomatoes score after first reviews.

  • Ilhan Omar’s daughter arrested at New York ‘Gaza solidarity camp’

    The daughter of Left-wing congresswoman Ilhan Omar has been arrested after taking part in a “Gaza solidarity encampment” at New York’s Columbia University.

  • Drying out and breezy

    Drying out and breezy

  • Sex and the City’s Tweety Bird tattoo guy has become a Gen Z heartthrob

    ‘Ben from the second season of Sex and the City come SAVE MEEEE,’ fan writes

  • US says Taliban will not be recognised until it allows women’s participation in society

    Taliban’s ‘self-stated goal of legitimacy can only be achieved’ with women’s participation, says US