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OfficeMax/Office Depot Merger a Done Deal

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Well, that was fast. Just a day after news broke that Office Depot was in the process of making an offer for rival OfficeMax, The New York Post reports the two retailers agreed to a merger.

The transaction is valued at roughly $1.2 billion.

The article points out, however:

Analysts say that if the deal closes it would likely benefit the largest office supply player Staples Inc. since the combined entity will likely close stores.

"We think a potential merger would result in a significant number of store closings, and thus an improvement in the overall economics of the office supply retail business," said S&P analyst Ian Gordon on Tuesday. "This area has been under pressure from a weak business spending environment and competition from non-traditional channels like Amazon in our view."

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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