In Fort Lauderdale, as well as other cities throughout Florida and the U.S., occasionally competitors in a business market may merge, joining forces. There are a number of different reasons for these types of mergers, including buying a company in order to eliminate competition, in an effort for one or both companies to avoid going out of business or to join forces against a stronger market rival.
Office supply superstore giants, OfficeMax and Office Depot, have reportedly reached an agreement for a merger. According to reports, Office Depot will purchase all OfficeMax stocks for $976 million. It remains unknown to the public at this time whether the two companies will be combined and operate under one name after the friendly acquisition is completed, or if stores will continue to operate under the same names as before the merger.
The deal is still subject to approval from the Federal Trade Commission (FTC). It appears, however, that the FTC will allow the merger between two of the three largest office supply store chains. The FTC reportedly determined recently that competition in the market would not be adversely affected by the joining of the two businesses.
As is the case with most complex business transactions, business partners and owners may find it of benefit to consult with an attorney prior to entering into a private or public merger. A lawyer can help to ensure that you fully understand all of the terms of the deal so that you are not taken advantage of, as well as address any other concerns that you may have.
Source: Chicago Tribune, “OfficeMax, Office Depot merger clears antitrust hurdle,” Oct. 20, 2013
