US: Federal judge blocks Staples’ $6.3 billion acquisition of Office Depot

A federal judge on Tuesday blocked Staples’ $6.3 billion acquisition of Office Depot, siding with the Federal Trade Commission, which argued the deal would reduce competition and raise prices.

The deal to combine the titans of paper clips, printing paper and other office essentials was fraught from the beginning. Regulators blocked Office Depot and Staples from merging nearly two decades ago. But the companies argued that the industry has changed dramatically since then.

“Today’s court ruling is great news for business customers in the office supply market. This deal would eliminate head-to-head competition between Staples and Office Depot and likely lead to higher prices and lower quality service for large businesses that buy office supplies,” Debbie Feinstein, the FTC’s Bureau of Competition Director, said in a statement.

The deal comes amid massive upheaval in the office supply industry. More business functions are now done online and there is declining demand for paper-based office supplies. Staples and Office Depot have also faced increasing competition from giants such as Amazon and Wal-Mart.

Full Content: Washington Post

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.