The Federal Trade Commission (FTC) is reportedly planning to block the merger of Staples (SPLS) and Office Depot (ODP).
According to New York Post, FTC regulators are looking to block the deal because they don’t want Staples and Office Depot to merge into the only nationwide supplier of office supplies to businesses. The current vote is reportedly two regulators for and two against the merger. Regulators have until Dec. 8 to decide if they want to block the merger.
If the current vote of two for and two against holds, then the FTC will do nothing about the Office Depot and Staples merger. However, it’s possible that one regulator could change their mind and they will block it. This will result in a lawsuit against the company. Staples is trying to avoid his by offering to send $600 million in back-end contracts to Essendant, an office supply wholesaler, reports New York Post.
Following news that the FTC may choose to block the Staples and Office Depot merger, SPLS shares were down 1% as of Noon Monday. ODP shares were also down during this time, falling 3%.
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