The first initial report came from the Wall Street Journal, stating that the two retailers are in the “advanced stage” of negotiations and that the merger announcement could come as early as this week. The Wall Street Journal also said the deal is “expected to be stock-for-stock” although the exact terms of the alleged merger have yet to come to light.
Although nothing has been officially announced, according to USA Today, on Feb. 19, shares for Office Depot jumped 28.5% and shares for OfficeMax jumped 20%.
According to USA Today, Office Depot has 1,675 stores worldwide and OfficeMax has roughly 900 stores in the U.S. and Mexico. Both retailers have a major ecommerce presence as well.
In 1997, Fox Business said, Office Depot almost merged with one of its biggest competitors, Staples, but it was blocked by the Federal Trade Commission who cited diminished competition and the threat of higher prices.