Given the two retailers’ dominating presence in the B2B office supplies space, the FTC argued a merger would significantly reduce competition in the marketplace and negatively impact large business customers.
Did Office Depot and Staples merge?
Retail office supplies giant Staples Friday said it plans to acquire the consumer-focused business of Office Depot, including the Office Depot and OfficeMax brand names, in a $1 billion deal that would leave Office Depot completely focused on the business-to-business market.
Does the FTC allow mergers?
In most cases, the Bureau receives notice of proposed mergers under the Hart-Scott-Rodino (HSR) Amendments to the Clayton Act. When necessary, the FTC may take formal legal action to stop the merger, either in federal court or before an FTC administrative law judge.
Why did Staples and Office Depot fail?
In 2016, the FTC blocked Staples’ acquisition of ODP, citing anti-trust concerns about the two companies’ combined domination of the office supply market. Office Depot rejected the offer, with ODP Board Chairman, Joseph Vassalluzzo, citing “regulatory risk” in a return letter.
Is Staples still trying to buy Office Depot?
The parent company of Staples remains determined to acquire its chief rival. USR Parent reaffirmed its proposal to acquire the consumer business of the ODP Corp., parent of Office Depot and OfficeMax, for $1.0 billion in cash. The proposal was delivered to the company on June 4, 2021, and remains unchanged.
Did Office Depot buy staples?
Staples said Friday it had sent a letter to the board of Office Depot outlining a $1 billion offer — or $18.27 a share — for its consumer business, which includes the Office Depot chain of stores and OfficeMax. Staples, sold itself to the private equity firm Sycamore Partners in 2017 for $6.9 billion.
Who has to approve mergers?
Because the FTC and the Department of Justice share jurisdiction over merger review, transactions requiring further review are assigned to one agency on a case-by-case basis depending on which agency has more expertise with the industry involved.
How long does the FTC have to approve a merger?
30 days
Once the filing is complete, the parties must wait 30 days (15 days in the case of a cash tender offer or a bankruptcy) or until the agencies grant early termination of the waiting period before they can consummate the deal.
Did Staples go out of business?
After the failed acquisition, Staples began to refocus its operations to downplay its brick-and-mortar outlets, and place more prominence on its B2B supply business….Staples Inc.
| Logo since 2019 | |
|---|---|
| Store in Saugus, Massachusetts, November 2012 | |
| Owner | Sycamore Partners (2017–present) |
| Number of employees | 75,000 (2021) |
Why did staples go out of business?
Staples, the world’s largest office supply chain, will close 140 locations this year due to increased competition from online retailers. The company closed 80 outlets within North America in the fiscal second quarter.
