Staples announced plans to buy Office Depot for about $6.3 billion, forging a deal that will reduce the U.S. office-supply industry to a single major chain.
The U.S. government’s antitrust watchdog, the Federal Trade Commission, is likely to approve the deal, experts said, agreeing with the companies that the rise of online retailers and mega stores had changed the competitive landscape since 1997 when the agency stopped the companies from merging.
Under the terms of the transaction, announced Wednesday, Staples would pay Office Depot $250 million if regulators block the tie-up. At about 4% of the deal’s value, that’s lower than many such antitrust-related breakup fees. These fees are meant to protect sellers by ensuring buyers will respond if regulators ask for concessions.
The FTC previously approved the merger of Office Depot and OfficeMax, the industry’s second- and third-biggest companies, in 2013. The issue now is whether consumers will be harmed by bringing the industry down to one chain.
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