OfficeMax and Office Depot are reportedly in talks of merging, according to the Wall Street Journal.
As of late Monday, talks of the two companies combining are in the advanced stages. An announcement could be made as early as this week.
A merge would assist the companies in increasing their profitability and shareholder value through cutting costs, closing stores and boosting clouts with suppliers.
Office Depot, based in Boca Raton, Fla., has about 1,675 stores worldwide. OfficeMax, based in Naperville, Ill., has about 900 stores throughout the U.S. and Mexico.
Since the merger report Monday, the companies’ shares soared early Tuesday morning. OfficeMax shares increased by 25 percent, and Office Depot shares rose by 16 percent, according to the Chicago Tribune.
If the two chains merge, competition could increase between the combined company and other companies like Walmart, Amazon.com and Staples—the largest office supply chain store in the U.S.