SoylentNews

takyon [soylentnews.org] writes:

Staples wants to merge with Office Depot, which recently acquired Office Max. The Federal Trade Commission (FTC) has other plans [marketplace.org]:

Staples and Office Depot face anti-trust lawyers for the Federal Trade Commission in U.S. District Court on Monday. The companies are fighting to complete their $6.3 billion proposed merger — an acquisition by Staples that follows Office Depot's acquisition of competitor Office Max. The FTC argues that allowing the remaining no. 1 and no. 2 office-supply chains in America to hitch up will create monopoly market conditions and restrict competition.

Last week, the CEOs of Staples and Office Depot issued an open letter saying the FTC's analysis is "flawed" and reflects "a deep misunderstanding of the competitive landscape." They argued that after they merge, they will still face significant competition to sell office supplies at the lowest price, and promised that they will pass those savings on to customers.

Efraim Levy, equity analyst at S&P Global Market Intelligence, agreed with the CEOs' assertion that the market for office supplies has been transformed in recent years by ubiquitous online-commerce opportunities. "You just have to make an electronic click on your screen," Levy said. "If Staples or Office Depot or the combination doesn't have the best prices compared to Amazon or others, consumers have an easy opportunity to make their purchases elsewhere."

More coverage at Reuters [reuters.com].

Original Submission