4/29/2023 0 Comments Did staples buy office depot" Staples-Office Depot to receive FTC decision on merger by Dec." Staples-Office Depot merger uncertainty could be resolved by Tuesday," Sun-Sentinel (December 4, 2015)." Staples forced to weigh costs of battle to merge with Office Depot," Sun Sentinel, December 11, 2015." Companies worried about secrets falling into hands of Office Depot, Staples," Sun Sentinel, January 19, 2016.To read the latest Sun Sentinel article on the merger, click here. This could implicate cutting jobs in order to cut costs.Īlthough not mentioned in the article, Brighton adds that Office Depot received millions in state and local tax incentives just over a year ago to keep its corporate facility in its current location. In fact, some were lost on both sides and we did merge some of each company and are now Office Depot, Inc. No, all of Office Max employees did not lose their positions. Office Depot has bought 2 businesses, over the years, Office Max being the latest aquisition. In addition, Staples is based in Massachusetts, while Office Depot's headquarters is in Boca Raton. Staples has actually been bought out, recently. These concerns include considerations about eliminating a large competitive player in the industry, potentially raising prices for consumers. In the latest Sun Sentinel article on the merger, Brighton comments that the FTC "doesn't necessarily want to stop the merger - they just want to address concerns." Lauderdale office, has been following the potential merger and has been repeatedly sought for his opinion on the acquisition. Robert Brighton, Jr., a partner in our Ft. Office supplies retailer Staples said on Wednesday it would evaluate 'all alternatives' to buy ODP Corp, weeks after the Office Depot and OfficeMax owner rejected a proposal to acquire some of its. Staples boss Stefan Kaluzny hopes he finally has a winning bid to roll up the country’s three big office-supply chains into one, with a 1 billion offer to buy the Office Depot and OfficeMax. The Federal Trade Commission is set to make their decision tomorrow concerning the proposed acquisition, potentially ending 10 months of uncertainty over its regulatory decision. ![]() It also included an “event study” that used stock market data to calculate both the effect of the merger on shareholders and the financial market’s implicit estimate of the effect of the merger on the prices charged by office superstores.Earlier this year, Staples announced its agreement to acquire the Boca Raton-based Office Depot for $6.3 billion. That’s the same calculation Office Depot made not long ago, when it bought OfficeMax. In addition to internal documents describing pricing policies and simple (but powerful) price comparisons between cities where Office Depot and Staples currently competed and those where they did not, the FTC’s evidence on price effects included a large-scale econometric model that predicted the effect of the merger on prices. Staples (SPLS) announced Wednesday it intends to buy rival Office Depot (ODP) in a 6.3 billion deal, betting that the key to higher profits is operating on an even larger scale. ![]() In another departure, for evidence of the likely anticompetitive effect of the merger, the FTC relied primarily on direct estimates of the merger’s effect on prices, rather than just predicting that an increase in seller concentration would cause significant (but vaguely specified) price increases. Focusing on the characteristics of individual suppliers, the FTC argued that Staples, Office Depot, and OfficeMax were sufficiently different from other suppliers of office products, and sufficiently close competitors to each other, that the “sale of office supplies through office superstores” could be defined as a market separate from the sale of office supplies in general. In contrast, Staples spotlighted the potential for a merger to have “unilateral effects,” a shift in focus first signaled by the 1992 revision of the Department of Justice and FTC Merger Guidelines. The antitrust enforcement agencies had traditionally focused on the increased probability of collusion following a merger as the primary theoretical underpinning for merger policy. Staples broke new ground in terms of both the economic theory and the type of evidence presented at trial in an antitrust case. District Court for the District of Columbia agreed with the FTC and granted a preliminary injunction, effectively dooming the merger. On June 30, 1997, after a seven-day trial, Judge Thomas F. ![]() Seven months later, the Federal Trade Commission voted 4 to 1 to oppose the merger on the grounds that it was likely to harm competition and lead to higher prices in “the market for the sale of consumable office supplies sold through office superstores.” The merging parties chose to contest the FTC’s actions in court. On September 4, 1996, the two largest office superstore chains in the United States, Office Depot and Staples, announced their agreement to merge.
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