Staples is buying Office Depot in a $6 billion deal that will spawn an office-supply mega-chain, The Associated Press reports.
In the cash-and-stock deal, which totals $6.3 billion, Office Depot Inc. shareholders will receive $7.25 in cash and 0.2188 of a share in Staples Inc. Office Depot is valued at $11 per share.
According to a company statement, Staples said it is expecting to generate at least $1 billion of annualized cost synergies and aggressively reduce global expenses by the third full fiscal year post-merger.