Does anyone have any new news about the merger?
4 replies (most recent on top)
Merger, take over, whatever anyone wants to call it it is inevitable. Irregardless of what the SEC decides Staples gets it way; "Competition is killed, and a take over happens". It is not any secret that Office Depot has been headed rather quickly towards the land of bankruptcy.
Scenario 1. Office Depot / Staples is not blessed by the SEC and the deal goes south. Staples has to pay Office Depot 450 million as in the agreement. Within a few years Office Depot crumbles and succumbs to bankruptcy the same path it has been on. If BK falls on Office Depot; everything is sold off and the only game in town really to buy all of the OD assets is Staples. A major competitor is eliminated, Staples wins and gets what it wanted.
Scenario 2. Office Depot / Staples deal is approved by SEC and the deal goes through. Staples closes around 1100 stores starting in 2016 like it has announced. Thousands of OD / Omax employees loose their jobs directly because of the merger and many who rely on OD / OM indirectly due to the merger loose theirs of are affected greatly. Staples directly kills any competition and is really the only "brick and mortar" office supply store left standing. Staples wins and still gets what it wanted.
Ron and Demos will will get what they want either way. As long as it lines money in their pockets and kills competition they could care less about anyone else. They have proven that from the get go.
BTW it's not a merger.... Staples has tendered an offer to purchase Office Max / Depot.
Everyone is acting like this is a done deal... SEC still has not blessed this union. Until they make their ruling it's all on hold.
What merger?