Office Depot, OfficeMax chief executives to be co-CEOs after deal

Sat Feb 23, 2013 5:02am IST

An Office Depot store is pictured in Encinitas, California, February 19, 2013. Office Depot, the No. 2 U.S. office supply retailer, is in advanced talks to merge with smaller rival OfficeMax and a deal could come as early as this week, a person familiar with the matter said on Monday. REUTERS/Mike Blake (UNITED STATES - Tags: BUSINESS LOGO) - RTR3DZUJ

An Office Depot store is pictured in Encinitas, California, February 19, 2013. Office Depot, the No. 2 U.S. office supply retailer, is in advanced talks to merge with smaller rival OfficeMax and a deal could come as early as this week, a person familiar with the matter said on Monday.

Credit: Reuters/Mike Blake (UNITED STATES - Tags: BUSINESS LOGO) - RTR3DZUJ

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(Reuters) - Office Depot Inc (ODP.N), which will acquire rival OfficeMax Inc OMX.N, said the chief executives of both companies would be appointed co-CEOs of the combined entity.

The office supplies retailers will establish a selection committee consisting of an equal number of independent directors to identify successor CEO candidates, Office Depot said in a regulatory filing on Friday.

Office Depot said on Wednesday it would acquire smaller rival OfficeMax in a $976 million all-stock deal but did not say who will lead the company or where it will be based.

The combined company will have dual headquarters in Boca Raton, Florida and Naperville, Illinois, Office Depot said on Friday. Both companies will continue to operate under their existing names, until a new headquarters and a new name for the businesses is approved by the board.

In case of termination of the merger agreement, either company may be required to pay the other a termination fee of $30 million.

Shares of Office Depot closed at $4.21, while that of OfficeMax closed at $12.27 on the New York Stock Exchange on Friday.

(Reporting by Neha Alawadhi in Bangalore)

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