Will OfficeMax Inc (NYSE:OMX) Get Maximum Benefit Out Of Office Depot Deal?
OfficeMax Inc (NYSE:OMX) is the No 3 office supplies retailer in the U.S while Office Depot stands at 2nd place. On Thursday, both these company’s saw a surge in their stocks. The companies had previously announced a merger plan and the market is increasingly convinced that it is almost imminent now.
This merger will definitely yield some notable cost-cuts. The Federal Trade Commission will have to give their nod for this proposed merger and this is the only step pending now. At the moment, the government shutdown is delaying the functioning of numerous agencies including the FTC. Analysts say that once path is cleared, both these stocks will spiral upwards as they will merge on all levels and cost-synergies will be beneficial to both the companies. Some analysts are saying the cost- synergies will be in the range of $400M-$600M. Store closings will offer some additional cost-opportunities.
In Thursday’s trading, OfficeMax Inc (NYSE:OMX) rose by 7.72%. The opening price of the shares was $13.26, which climbed to an intraday high of $13.35 and dipped to a close of $00.00. Approximately 4.52 million shares were traded on Thursday while an average volume of 1.82 million shares were traded over a 30 day period. The 52-week low of OfficeMax Inc (NYSE:OMX) shares is $7.04 and its 52-week high is $14.92. The company has a market capitalization of $1.16 billion.
About the company
OfficeMax Inc (NYSE:OMX) is involved in distributing products to B2B and retail-customers. It provides office-supplies and paper, document and print services, technology-solutions and products and office-furniture to large, medium & small businesses, government-offices and consumers. It operates in 3 business segments: 1) OfficeMax, 2) OfficeMax Retail and 3) Corporate and Other. The Contract segment supplies a range of products for offices, such as office-supplies and paper, technology solutions and products, office-furniture, document and print services and facilities-products