From CNET: Staples is scooping up Office Depot to the tune of $6.3 billion.
Combined, the two companies own around 4,000 stores and see annual sales of more than $35 billion. But the pair have been hit by greater competition from online retailers such as Amazon as well as chains such as Target and Wal-Mart, which also sell office supplies and consumer electronics.
Staples expects to achieve $1 billion in cost reductions by its third full fiscal year following the closing of the deal. Most of these reductions would be the result of layoffs and reductions in administrative expenses; greater efficiency on the purchasing, marketing and supply chain end; and retail store optimization, which surely means closing some outlets.
The two companies announced the deal Wednesday following reports from the Wall Street Journal that the two were discussing a merger in an increasingly competitive marketplace. Staples said that it began acquisition discussions with Office Depot in September 2014.
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