FTC Likely to Delay Decision on Staples, Office Depot Merger
October 07 2015 - 12:40PM
Dow Jones News
The Federal Trade Commission's timeline for deciding whether to
allow Staples Inc.'s takeover of Office Depot Inc. is likely to be
delayed, according to people familiar with the matter.
The companies and FTC antitrust enforcers had previously entered
into a timing agreement that could have required the commission to
make decision by early next week. But the regulatory landscape
changed when antitrust officials at the European Commission
announced Sept. 25 that they had opened their own investigation of
the acquisition.
European officials, who cited preliminary concerns about how the
merger would affect business customers, said they have until
February to make a decision on whether to allow the deal.
With the addition of extra months of review across the Atlantic,
the companies and the FTC have been in discussions about extending
the timeline in the U.S., people familiar with the matter said.
It couldn't immediately be learned how far the U.S. timeline
might extend. It is also not clear which side might benefit from
any extra time. It could give the FTC more room to try to build a
case if it chooses to challenge the deal. But a time extension also
could give the companies more opportunities to try to address any
FTC concerns.
The Wall Street Journal reported last month that the FTC was
seeking sworn legal declarations from possible witnesses that could
be used if the commission decided to bring a lawsuit against the
deal.
The commission successfully challenged a previous proposed
merger of the companies in 1997, but the office-supply market has
evolved in the intervening 18 years. The FTC allowed Office Depot
and OfficeMax to merge in 2013.
Spokeswomen for the FTC and Office Depot declined to comment.
Staples didn't immediately respond to a request for comment.
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(END) Dow Jones Newswires
October 07, 2015 12:25 ET (16:25 GMT)
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