A PYMNTS Company

US: FTC sues Staples in bid to block Office Depot takeover

 |  December 7, 2015

Staples Inc. will face a challenge by US antitrust officials, who said for the second time in 20 years that the office supply chain’s proposed takeover of Office Depot Inc. will squelch competition and should be blocked.

The US Federal Trade Commission filed a complaint Monday seeking to block the combination, which would leave just one national retailer of office supplies and raise prices for corporate customers who buy under contract, the agency said in a statement.

“The commission has reason to believe that the proposed merger between Staples and Office Depot is likely to eliminate beneficial competition that large companies rely on to reduce the costs of office supplies,” said FTC Chairwoman Edith Ramirez. “The FTC’s complaint alleges that Staples and Office Depot are often the top two bidders for large business customers.”

Full content: Reuters

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