Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS: EC Will Investigate Staples’ Proposed Acquisition of Office Depot, (Sep 25, 2015)
Organizations Mentioned:Staples, Inc.
By Jody Coultas, J.D.
The European Commission has opened an in-depth investigation into Staples Inc.’s proposed acquisition of competitor Office Depot, Inc., according to an announcement issued today. The EC has concerns that the takeover could lead to increased prices and less choice for consumers in the European Economic Area.
Both Staples and Office Depot sell office products via a number of sales channels, including wholesale, retail, direct sales (online and catalogue) and national or international supply contracts. According to a joint statement, Staples began discussions to acquire Office Depot in September 2014. The agreement has been unanimously approved by each company’s Board of Directors. With the acquisition of Office Depot, Staples will have pro forma annual sales of approximately $39 billion.
A preliminary investigation indicated potential competition concerns in the market for the supply of office products to business customers through international contracts, as well as in the market for the supply of office products to business customers through national contracts in the Netherlands and Sweden.
Staples and Office Depot, together with their largest European competitor Lyreco, are the main suppliers of office products to business customers. Smaller companies may not be able to exercise a sufficient competitive constraint on the merged company.
The case is No. M.7555.
News: AcquisitionsMergers Antitrust