US office supply and stationery retailer Staples is set to buy rival Office Depot in a cash and stock deal valued at $6.3bn (£4.13bn).

Under the terms of the agreement, Office Depot shareholders will receive $7.25 (£4.75) in cash and 0.2188 of a share in Staples.

The transaction values Office Depot, which operates more than 2,000 stores, at $11 (£7.20) per share.

Staples, which said talks to acquire the Office Depot had started last September, said the acquisition would result in pro forma annual sales of about $39bn (£25.6bn).

However, Reuters said the deal is likely to come under close scrutiny from anti-trust regulators.

Following the closing of the transaction, Staples’ new board of directors will increase from 11 members to 13 members and include two Office Depot directors approved by Staples. Staples chairman and chief executive officer Ron Sargent will remain in his role.

Sargent said: “This is a transformational acquisition which enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment. We expect to recognise at least $1bn of synergies as we aggressively reduce global expenses and optimise our retail footprint. These savings will dramatically accelerate our strategic reinvention, which is focused on driving growth in our delivery businesses and in categories beyond office supplies.”

Roland Smith, chairman and chief executive officer for Office Depot, said: “This transaction delivers great value for our shareholders and creates a company ideally positioned to serve our customers and grow over the long term. It is also an endorsement of our many accomplishments and the tremendous success we’ve had integrating Office Depot and OfficeMax over the past year. We look forward to bringing our experience and knowledge to the new organisation.”