The Federal Trade Commission will block the proposed merger of Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP).
Federal regulators confirmed a report that claims that the FTC will block the union between the companies, which would’ve cost Staples more than $6 billion.
The move will be denied due to the fact that the merger of Staples and Office Depot will result in increased prices for corporate customers, eliminating “beneficial competition that large companies rely on to reduce the costs of office supplies,” said FTC Chairwoman Edith Ramirez.
Staples revised a package of actions last week as it sought regulatory approval of the deal, hoping some changes would sweeten the deal from the FTC’s point of view.
The companies are the number one and number two office supply chains in the US.
SPLS stock is down 11.3% Monday. ODP stock is down 15.7%
