Staples is set to buyout their rival Office Depot to become the biggest retailer in the office supply market.
The Wall Street Journal fist broke the story that Staples and Office Depot were in advance talks for a possible merger. The transition will reportedly cost the company 6.3 billion in cash and stock. Staples originally tried to acquire their rival back in 1997, but that deal was nixed by the FTC. With the rise of Internet shopping and mega-websites that offer the same office supply products it is unlikely that the FTC will stop the merger this time.
How This Affects Card Holders
If you are a current Office Depot card holder prepare to receive a notice about the merger and have your card exchanged for one with similar features but with the Staples branding in the near future if you haven't already. Both store cards are issued by Citibank and making the switch should be a painless one.
As you can see from the above comparison both credit cards share the same interest rate at 27.99%, and both offer a zero percent interest rate on specific purchase amounts. The Staples rewards program is actually much better that anything offered by Office Depot with free shipping on all orders when you pay with your card. You also receive 5% back in rewards on ink, paper, and printing purchases. The rewards are even better if you are a teacher, click here to view their rewards.
This merger is long overdue for these competitors especially considering how tight the market is from the Internet and warehouse stores. Hopefully this will allow them to stay in business longer and give customers better service and prices.
1. Time Inc., (2015) "Staples to Buy Rival Office Depot for 6.3 Billion" Retrieved February 7, 2015.
2. Dow Jones & Company, Inc., (2015) "Staples, Office Depot in Advance Talks to Merge - WSJ" Retrieved February 5, 2015.