NEW YORK (TheStreet) -- Office Depot (ODP) shares are up 0.32% to $9.08 in afternoon trading on Tuesday on more than double its normal trading volume as the stock continues to gain after the company's shareholders voted and nearly unanimously approved its $6.3 billion merger with rival Staples (SPLS).
The company said that 99.5% of the votes cast were in favor of closing the deal with Staples which was first announced in February.
Office Depot shareholders will get $7.25 per share in cash and 0.288 of a share in Staples stock for each share they own.
The deal is subject to regulatory approval in the U.S., while regulatory agencies in China and New Zealand have already approved the merger.
TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OFFICE DEPOT INC (ODP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: