Judge Blocks Staples-Office Depot Merger
May 10 2016 - 7:40PM
Dow Jones News
WASHINGTON--A federal judge on Tuesday blocked the planned
merger of office-supply rivals Staples Inc. and Office Depot Inc.
because of antitrust concerns, a ruling that likely would sink the
deal.
U.S. District Judge Emmet G. Sullivan, in a written order, sided
with the Federal Trade Commission, which in a December lawsuit
alleged the combination of the office superstores would lead to
higher prices for large corporations that buy office supplies in
bulk.
Judge Sullivan issued a preliminary injunction that bars the
companies from completing the deal.
"The Court finds that Plaintiffs have met their burden of
showing that there is a reasonable probability that the proposed
merger will substantially impair competition in the sale and
distribution of consumable office supplies to large
business-to-business customers," the judge wrote.
The judge's full opinion wasn't immediately released to the
public because it contains confidential business information.
Tuesday's loss is a blow for the companies, which hoped the deal
would boost their fortunes after years of sinking revenues.
The ruling marks the second time the FTC has defeated a
Staples-Office Depot merger effort, since it also won a decision in
1997 that prevented the companies from joining forces. In the
current case, the office suppliers argued the market had changed
dramatically in the nearly two decades since the earlier
decision.
Write to Brent Kendall at brent.kendall@wsj.com and Drew
FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
May 10, 2016 19:25 ET (23:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Staples, Inc. (NASDAQ:SPLS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Staples, Inc. (NASDAQ:SPLS)
Historical Stock Chart
From Apr 2023 to Apr 2024
