SOURCE: Research Driven Investing

Research Driven Investing

February 22, 2013 08:20 ET

Talks of a Potential Merger Between Office Depot and OfficeMax Sends Office Retailers Soaring

RDInvesting Provides Stock Research on Staples and Amazon

NEW YORK, NY--(Marketwire - Feb 22, 2013) - Shares of office retailers Office Max and Office Depot were sent soaring Tuesday after The Wall Street Journal on Monday reported that the companies were in "advanced talks to merge." The proposed merger would help the companies compete against rivals Staples Inc. and Research Driven Investing examines investing opportunities in the Retail Industry and provides equity research on Staples, Inc. (NASDAQ: SPLS) and, Inc. (NASDAQ: AMZN).

Access to the full company reports can be found at:

According the WSJ article the merger is expected to be a "stock-for-stock" exchange, but further details are unknown at this time. The current market values of Office Depot and Office Max are approximately $1.3 billion and $933 million, respectively. The two companies combined would have roughly 2575 stores located across the U.S. and Mexico. In 1997, a potential deal between Staples and Office Depot was blocked by the U.S. Federal Trade Commission as they feared it would lower completion and increase prices.

"Consolidation would address the office supply sector's disadvantaged industry structure," Sanford C. Bernstein retail analyst Colin McGranahan wrote in a research note on Friday.

Research Driven Investing releases regular market updates on the Retail Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Staples is the world's largest office products company and second largest internet retailer. Investment firm Janney Capital Markets believes the merger would provide a major boost for Staples as it would "gain market share from store closures, a multi-year restructuring and a company overwhelmed by integration initiatives." is the world's largest e-commerce company offering millions of unique new, refurbished and used items in a variety of categories. The company reported net sales grew to $21.27 billion in the fourth quarter, an increase of 22 percent when compared with sales of $260 million in fourth quarter 2011. Shares of Amazon have gained over 7 percent year-to-date.

Research Driven Investing has not been compensated by any of the above-mentioned publicly traded companies. Research Driven Investing is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: