Two major office superstores of Office Depot and OfficeMax announced their signing of a merger agreement which will create an $18 billion combined company.
The two groups now have the common goal of fighting more effectively against Staples and mass-market retailers, warehouse clubs, and online behemoths like Amazon.
The CEO for the new company has not been determined, with the CEOs of both firms considered as the favored options.
The new company’s name, marketing brands and headquarters location will be released after the appointment of the CEO. The two firms say the transaction will end by the end of 2013.
Actionable Intelligence predict this merger as bad news for printer suppliers as it will impact orders for OEM and aftermarket printer consumables if the combined company closes large numbers of stores. Besides, the narrowing of office superstore channel will make it much easier for OEMs to impose pressure upon the channel about non-OEM printer supplies.