Office Depot, OfficeMax to Merge

Two major office superstores—Office Depot and OfficeMax—announced  the signing of a merger agreement that will create an $18 billion combined company. The two enterprises now have the common goal of fighting more effectively against Staples and other mass-market retailers, warehouse clubs, and online behemoths, the likes of Amazon and eBay..

The CEO for the new company has not yet been determined, with the CEOs of both firms considered as the favored options. The new company’s name, marketing brands and headquarters location will also be released after the appointment of the CEO. The two firms say the transaction will be complete by year-end 2013.

Actionable Intelligence predicts 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 the office superstore channel will make it much easier for OEMs to impose pressure upon the channel regarding non-OEM (aftermarket) printer supplies.