Business

Staples offers to buy Office Depot owner's consumer business for $1 bln

1 minute read

Shopping carts are shown at an Office Depot Inc store in Encinitas, California, U.S., May 8, 2017. REUTERS/Mike Blake

Register now for FREE unlimited access to reuters.com

June 4 (Reuters) - Staples said on Friday it had offered to buy Office Depot owner ODP Corp's (ODP.O) consumer business for $1 billion, the latest effort by the office supplies retailer to acquire its rival's assets.

Staples offered about $18.27 per share for the business, which it said represents a premium of about 43% to the 30-day average closing price of ODP's stock as of June 2.

ODP said it is reviewing Staples' proposal with the assistance of its financial and legal advisors.

Register now for FREE unlimited access to reuters.com

Shares in ODP closed up 11.2% at $49.56 on Friday, after hitting a near four-year high of $50.14 during the session.

Last month, ODP said it would spin off its distribution platform, which schools, offices and other businesses use to buy supplies, into a separate company.

Staples is now proposing to buy ODP's unit that includes the Office Depot and OfficeMax retail store businesses.

Register now for FREE unlimited access to reuters.com
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters