FTC Rejects Staples-Office Depot Deal Without a Counteroffer

20 Jan 2016 | Author: | No comments yet »

FTC Rejects Staples-Office Depot Deal Without a Counteroffer.

Staples offered to give up $1.25 billion in commercial contracts to acquire Office Depot, but federal regulators have rejected it, the company said Monday. “The company is confident in its legal position and looks forward to a full and impartial judicial review of the matter,” Staples said in a news release.

After filing an antitrust lawsuit to block the $6.3 billion buyout, today the Federal Trade Commission has formally rejected a revised version of the deal — without making any sort of counteroffer to the two retailers. Staples says it’s willing to continue negotiating with the FTC, but it’s clear that the commission isn’t a fan of the two top office supply chains joining together.

Upon filing its lawsuit, the FTC said Staples and Office Depot merging into one company would likely “eliminate beneficial competition that large companies rely on to reduce the costs of office supplies.” That’s very much unlike Office Depot’s purchase of OfficeMax in 2013, which got the thumbs up from regulators without any real trouble. FTC lawyer Tara Reinhart responded that the agency has told the companies that it’s concerned that they are merely transferring contracts and not divesting physical assets.

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