The Recycler
  • Biuromax Web banner June 2022
  • Ninestar June 2022 Masthead Banner
  • ECS Web ad March 2022
  • Katun March Web Advert 2021
  • Static Control June 2022 Masthead Ad

Staples-Office Depot case closes

Staples-Office Depot case closes

April 20, 2016

The US Federal Trade Commission's headquarters

The US Federal Trade Commission’s headquarters

Analysis of the trial as it ends sees investors “increasingly optimistic” the deal will go ahead, especially with the judge having been “critical” of the government case.

The Federal Trade Commission (FTC) filed a lawsuit to block the $6.3 billion (€5.8 billion) merger last year, and took a dramatic turn towards approval after Judge Emmet Sullivan highlighted FTC attempts to pressure Amazon “to lie” about the challenge a combined company might pose. Staples and Office Depot then surprised observers by refusing to present a defence, which was called a “risky decision”.

Amazon had become embroiled amid rumours of it helping out the merger earlier this year, while further settlement talks were revealed that came to nothing. Staples has also offered to freeze prices for approval. Both companies extended their merger agreement to May in January, while the relevance of cartridges to the case was also covered during the trial.

Bloomberg reported on the closing arguments in the case, noting that the merger’s fate “falls to [a] judge critical of [the] US case”, with Judge Sullivan said to have “undercut the government’s case throughout the trial”. In final arguments, he “needled” the FTC about why its economic expert “completed his analysis about the scope of the market only after the agency filed its complaint”, adding that “it would have been more logical if the expert had come to his conclusions earlier”.

This was “the latest in a string of pointed questions for the FTC” during the three-week trial, particularly how the agency was focused on how the merger “would harm competition in sales to corporate customers – not retailer consumers – in its suit”. The piece also referred to Judge Sullivan “repeatedly press[ing]” both sides to reach a settlement, with investors now thinking that “the FTC’s case was being undermined”, which “made them put higher odds on Staples prevailing”.

It also noted that Judge Sullivan had asked questions about “a fundamental principle of merger law”, in that the government “is supposed to guard against harm to competition, even when companies are the ones affected by higher prices”. As such, he pressed FTC lawyers “about why they didn’t allege harm to retail consumers”, and noted that “I’ve not heard any references to the average consumer […] that seems odd”.

A decision is expected from Sullivan before 10 May, six days before Staples and Office Depot’s merger agreement expires.

 

 

 

Don’t miss

2000x1000_Layout 1

Categories : City News

Tags : Office Depot Staples USA

  • GPI Web ad June 2022
  • Aster Big & Bold Web ad May 2022
  • Mito Big & Bold Web ad May 2022
  • Static Control June 2022 Big & Bold Ad
  • IR Italiana Web ad January 2021
  • Apex UStation web banner
  • GM Technology June 2022 Web ad
  • CTS New Ad March 2022
  • ITP Web ad January 2021
  • Zhono web ad May 2022
  • PCL Web ad January 2021
  • CET June 2022 Web ad
  • HYB Web banner
  • CET June 2022 Web ad
  • PCL Web ad January 2021
  • Zhono web ad May 2022
  • HYB Web banner
  • ITP Web ad January 2021
  • CTS New Ad March 2022
  • HYB Web banner
  • ITP Web ad January 2021
  • CET June 2022 Web ad
  • CTS New Ad March 2022
  • PCL Web ad January 2021
  • Zhono web ad May 2022

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2021 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021