The Wall Street Journal is reporting that OfficeMax Inc. and Office Depot Inc. are talking about combining their companies.
The newspaper, citing unidentified people familiar with the matter, said Monday that talks are at an advanced stage, and an announcement could come as early as this week.
Representatives of both companies declined to comment.
The office supply business is very competitive. Staples is a big player, along with Amazon and big discount stores such as Costco and Wal-Mart.
Boca Raton, Fla.-based Office Depot has about 1,675 stores worldwide, mostly in the U.S. and Canada. OfficeMax, based in Naperville, Ill., has about 900 stores in the U.S. and Mexico. If the two companies merged, they could close stores that compete against each other, as well as reduce costs.