Office Depot Inc. shareholders approved the office supply chain’s $6.3 billion acquisition by rival Staples Inc., the company said Friday.
The merger between the two competitors, which is expected to close by the end of this year, still requires approval from federal antitrust regulators.
“We’re pleased that Office Depot shareholders have overwhelmingly approved this transaction,” Ron Sargent, Staples chairman and CEO, said in a statement. “The combined company will allow us to provide more value to customers and more effectively compete in a rapidly evolving environment.”
The deal gives Office Depot shareholders $7.25 in cash and 0.2188 of a share in Staples stock per Office Depot share.
Staples has received approval from New Zealand and China regulation agencies and is working to gain clearance from other agencies.
As consumers have moved their purchases online to shopping sites such as Amazon.com or to brick-and-mortar competitors such as Walmart and Costco, the two businesses have struggled. Analysts suggest the deal will only serve as a temporary fix to the waning demand for paper, toner, and ink in the digital age.
Karishma Mehrotra can be reached at firstname.lastname@example.org. Follow her on Twitter @missmishma.