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Office Depot, Staples proposed merger a no-go due to court decision

May 13, 2016

Staples and Office Depot will not be one now that a federal judge has decreed such a merger would violate antitrust rules.

The decision this week didn't come as a huge surprise as the federal government wasn't too keen on the idea and challenged the $6.3 billion proposed acquisition in court. The victory by the Federal Trade Commission (FTC) didn't sit well with stock holders with Staples' shares dropping 10 percent and Office Depot suffering even worse, with a 26 percent dip, according to a Bloomberg report.

Both office supply retailers have indicated they have no plans to appeal the decision.

U.S. District Judge Emmet Sullivan said the FTC met the "burden of showing that there is a reasonable probability that the proposed merger will substantially impair competition in the sale and distribution of consumable office supplies to large business-to-business customers," according to Bloomberg.