Office Depot Merger With OfficeMax Wins U.S. Approval
By David McLaughlin – Nov 1, 2013 9:46 AM ET
Office Depot Inc. (ODP)’s merger with OfficeMax Inc. won approval from U.S. antitrust regulators, clearing the way for the office-supply companies to create a single retailer to compete with Staples Inc. (SPLS)
The Federal Trade Commission voted to close its seven-month investigation into the merger, saying the combination is unlikely to substantially reduce competition, the commission said in a statement today.
The commission in 1997 successfully challenged Staples’s deal to acquire Office Depot.
“Our current investigation has shown that the market for the sale of consumable office supplies has changed significantly in the intervening years,” it said.
Office Depot and OfficeMax agreed in February to combine in in a $1.17 billion deal after losing sales to online rivals and to Staples, the largest U.S. office-supplies chain. They said the combined company would generate revenue of about $18 billion.
OfficeMax, based in Naperville, Illinois, was up 4 percent to $15.58 at 9:39 a.m. in New York, and Office Depot, based in Boca Raton, Florida, rose 3.8 percent to $5.80.
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