Staples Bids $11 Per Share In Cash, Stock For Office Depot

Staples, Inc. (NASDAQ: SPLS) has agreed to buy Office Depot Inc (NASDAQ: ODP) in a deal that is reportedly valued at $6.3 billion. Office Depot shareholders will receive $7.25 per share in cash as well as 0.2188 Staples shares, putting the total per-share cost at $11 as of Tuesday’s closing price.

Staples was down almost 2 percent in the premarket, while Office Depot (up more than 8 percent) added to Tuesday's sharp gains. The latest news of this deal was first broken Tuesday by The Wall Street Journal.

It is unclear at the moment how regulators will feel about the move. In 1997, antitrust regulators successfully sued to block the same merger.

The two companies will likely have to go through a rigorous process with antitrust regulators. Both companies have already been closing stores throughout the country, while trying to build a larger online footprint.

Brian Sozzi of Belus Capital Advisors recently outlined three reasons that the companies should remain independent. In particular, Sozzi said that the deal reminds him of the disastrous Sears/K-Mart tie up.

Activist fund Starboard Value LP stands to benefit from the merger, owning 6 percent of Staples and 10 percent of Office Depot.