OfficeMax Inc. and Office Depot Inc. are in advanced talks to merge, people familiar with the matter said, as the retailers of pens, paper and desks try to fight off tougher competition from rivals like Staples Inc. and Amazon.com Inc. The sides are considering other options and the talks may still fall apart, said one person.
– OfficeMax and Office Depot could be close to a merger, the Wall Street Journal reports: They're deep into talks and, while there are no guarantees, they could announce the deal within days. The arrangement would likely be via stock trade. Both companies have struggled over the past few years in the face of competition from Staples and Amazon. Office Depot's shares have dropped some 90% since 2006, and its top shareholder wants the company to take action. A combined firm would mean revenue of about $18 billion, Bloomberg notes; Staples' revenue last year was $25 billion.