OfficeMax Deal May Be Good for Everyone
That's the take of several Wall Street analysts, none of whom expects the deal to shake up the office products industry. But in the short term, Staples (SPLS) and Office Depot (ODP), the No. 1 and No. 2 players, respectively, could pick up a few OfficeMax and Boise business customers while the two are in limbo waiting to merge, analysts say. And in the longer term, the merger could provide a more solid third competitor, creating a more stable industry less prone to bottom line-busting promotions.
"There will likely be a more rational, but more equal, competitive environment," said Colin McGranahan, who covers Office Depot and Staples for Sanford Bernstein. "There will be a more benign, oligopolistic market."
Boise on Thursday
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