News Column

Office Depot, OfficeMax Cleared for Merger

November 1, 2013

Marcia Heroux Pounds, Sun Sentinel

office depot officemax
The FTC won't block a proposed merger between Office Depot and OfficeMax.

Nov. 01--The Federal Trade Commission said Friday it has unanimously voted to close its seven-month investigation into the proposed $1.2 billion merger of office supply superstores Office Depot and OfficeMax.

Office Depot employs 1,700 workers at its headquarters in Boca Raton.

While the FTC successfully challenged the proposed merger of office supply superstores Staples, Inc., and Office Depot in 1997, the Commission said in a statement that its investigation, "has shown that the market for the sale of consumable office supplies has changed significantly in the intervening years."

As a result, office supply superstores "today face significant competition and . . . the proposed merger is unlikely to substantially lessen competition in the retail sale of consumable office supplies."

The Commission's statement describes differences in the competition faced by office supply superstores in 1997 and today, saying that customers now look beyond office supply superstores when buying office supplies.

Non-office supply superstores such as Wal-Mart and Target, along with club stores like Costco and Sam's Club, have expanded their office supply product offerings and now compete with office supply superstores, the Commission said. Amazon and other internet retailers of office supplies also have grown quickly and significantly, and compete with office supply superstores, the FTC said.

The staff's investigation focused on contracts for large multi-regional or national customers, which typically have the most demanding purchasing requirements and, as a result, fewer potential suppliers capable of meeting their needs. The Commission concluded that the merger was unlikely to substantially lessen competition in the contract channel, and, "there was little concern from contract customers about the proposed merger."

The vote to close the FTC's investigation and issue a Commission statement was 4-0.

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(c)2013 the Sun Sentinel (Fort Lauderdale, Fla.)

Visit the Sun Sentinel (Fort Lauderdale, Fla.) at www.sun-sentinel.com

Distributed by MCT Information Services

Original headline: FTC won't block Office Depot's merger with OfficeMax


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Source: (c)2013 the Sun Sentinel (Fort Lauderdale, Fla.)


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