The new Office Depot (ODP) started trading Nov. 6 after completing its $1.2 billion merger with Office Max (OMX) the day before. The merged company will have $17 billion in annual revenue, still far behind Staples (SPLS), the office supply company’s biggest competitor.
The highlight of the deal is annual cost savings of up to $600 million within three years. Separately, both companies have too much debt, and the companies are hoping the merger will help them overcome that debt … but I wouldn’t hold your breath. Bain Management suggests that up to 70% of corporate mergers fail or don’t produce the savings anticipated.
With that in mind, I’ve put together a list of five big-name mergers from recent corporate history — three that worked and two that didn’t.