Staples-Office Depot Merger in Jeopardy: Regulators Ready to Block $6.3B Union
Federal regulators are having second thoughts about Staples $6.3B-plus bid to buy rival Office Depot.
Sources tell the New York Post that regulators are uneasy about the merger, citing concerns about making Staple’s the nation’s sole office supplier serving big corporations and government clients. “They are ramping up for litigation,” one inside source said.
If the deal—first announced last February—gets the kibosh, it wouldn’t be the first time. The commission previously blocked a merger between the two office supply retailers in 1997, successfully arguing the dynamic duo would substantially weaken competition at the retail level.
The FTC officially has until Dec. 8 to make its decision. Office Depot plans to close 400 stores by the end of 2016 whether the merger goes through or not. [NYP]
