Office Depot, office supply retailer, has bought over Office Max at an estimated price of $1.2Bn in an all-stock deal. The acquisition is one of the several large scale acquisitions that took last week. Office Depot has completed this acquisition at a time when it’s fourth quarter results didn’t came out as expected and it reported losses of $7.3Mn or 4 cents a share as against 3 cents a year in the preceding year with revenues of $2.62Bn.
Office Depot was however predicted to earn a profit of 4 cents on $2.76Bn by Thomson Reuters.
The only competitor for Office Depot after acquiring Office Max is Staples, the largest supplier of office goods in the world. Subsequent to the deal Office Depot and Office Max will look forward to giving some competition to Staples in an era when the market share for both the companies dropped and consumers shifting to online space for making purchases.
Source: CNBC
