Staples says regulator rejected latest offer for Office Depot

NEW YORK -- Federal regulators rejected an offer from Staples to sell $1.25 billion in contracts, an attempt on the part of the office supply retailer to ease monopoly fears as it tries to acquire rival Office Depot.

See Full Article

The Federal Trade Commission sought to block the deal earlier this month believing that a tie up between the last of the major retailers in the sector would throttle competition. Regulators said that competition between the two was crucial to keep prices fair for those industries that must acquire pens, paper and other supplies.

The office supply sector has been upended by technological changes in the work place, as well as a slow economic recovery. The industry had already undergone a notable consolidation with the merger two years ago of Office Depot and OfficeMax.

Office Depot and Staples argue that competition has become even tougher since then, and that the FTC is contradicting itself because it said that the office supply market was highly competitive two years ago.

Staples, based in Framingham, Massachusetts, said that it is still willing to negotiate with the FTC and that it may pursue legal action to close the deal.

Shares of Staples Inc. slipped 4 cents to $9.38 in morning trading Monday. Shares of Office Depot Inc., based in Boca Raton, Florida, slipped 2 cents to $5.39.



Advertisements

Latest Economic News

  • CMHC to hike mortgage insurance premiums by an average of $5 a month

    Economic CBC News
    The Canada Mortgage and Housing Corporation will charge borrowers a few dollars more every month to insure their mortgages starting in March. The housing agency made the announcement in a release Tuesday. Starting March 17, CMHC will charge mortgage holders slightly more every month to insure their loans. Source
  • Silk, steam and slogans: Inside a North Korean factory

    Economic CTV News
    PYONGYANG, Korea, Democratic People's Republic Of -- As the morning light poured through large windows, women wearing olive-colored overalls, pink aprons and headscarves stood at stations where silkworms were being boiled. Some used their bare hands to pull silk thread from the boilers and winced as the steam rose toward their faces. Source
  • CMHC to raise mortgage insurance premiums for homebuyers as of March 17

    Economic CTV News
    OTTAWA - Canada Mortgage and Housing Corp. is raising the cost of mortgage loan insurance effective March 17. The Crown corporation estimates the increases will add about $5 to a monthly mortgage payment for its average homebuyer. Source
  • Rolls Royce agrees to pay $808 million on bribery claims

    Economic CTV News
    LONDON - Jet engine maker Rolls Royce has agreed to pay 671 million pounds ($808 million) to settle bribery and corruption charges brought by authorities in Britain, the U.S. and Brazil. A U.K. High Court judge will examine the deferred prosecution agreement during a public hearing on Tuesday. Source
  • British American Tobacco agrees to take over Reynolds

    Economic CTV News
    LONDON -- British American Tobacco Plc has agreed to fully take over Reynolds American Inc. in a deal that will create the world's largest publicly traded tobacco company. The $49 billion takeover was agreed on improved terms compared with an initial bid made last year. Source
  • Malaysia Air on rebound as missing flight search called off

    Economic CTV News
    HONG KONG -- Nearly three years after twin disasters took it to the brink of financial collapse, Malaysia Airlines' new CEO says the airline's recovery is going better than expected. The search for the airline's Flight 370 that went missing in March 2014 with 239 people on board was suspended Tuesday. Source
  • Top-down solutions from Davos elite out of step with populist anger: Don Pittis

    Economic CBC News
    In the Swiss resort town of Davos amid the glare of media attention, movie stars, billionaires and politicians have gathered once again to tell us what we are doing wrong and how to start doing things right. Source
  • Why the Dow Jones hitting 20,000 is meaningless

    Economic CBC News
    There are few things economic experts agree on. That the Dow Jones Industrial Average is ridiculous as an economic indicator is one. That its milestones are meaningless is another. For weeks now, headlines have been breathlessly anticipating the Dow breaking through the 20,000-point mark. Source
  • The Dow Jones Industrial Average is ridiculous — and its 20,000-point milestone doesn't matter

    Economic CBC News
    There are few things economic experts agree on. That the Dow Jones Industrial Average is ridiculous as an economic indicator is one. That its milestones are meaningless is another. For weeks now, headlines have been breathlessly anticipating the Dow breaking through the 20,000-point mark. Source
  • Shell Canada seals second deepwater well off Nova Scotia, silent on results

    Economic CTV News
    HALIFAX - Shell is moving to seal off the second of its two deepwater exploration wells off Nova Scotia. The company began work on the Monterey Jack well on the Scotian Shelf on Sept. Source