Judge Blocks Staples-Office Depot Merger

Framingham, MA - A federal judge blocked a proposed merger between Staples and Office Depot Tuesday, after the Federal Trade Commission successfully made the case that the two office supply giants' combined forces would be anti-competitive.

Under the deal, valued at $6.3 billion, Staples’ corporate headquarters would still have remained in Framingham.

That deal is now kaput, following the judge's decision. Both companies had said if the FTC blocked them in court, the deal is almost definitely off.

Both released statements Tuesday affirming they would not appeal.

From Staples Chairman and CEO Ron Sargent:

“We are extremely disappointed that the FTC’s request for preliminary injunction was granted despite the fact that it failed to define the relevant market correctly, and fell woefully short of proving its case,” said Ron Sargent, Staples’ chairman and chief executive officer. “We believe that it is in the best interest of our shareholders, customers, and associates to forego appealing this decision, terminate the merger agreement, and move on with our strategic plan to drive shareholder value. We are positioning Staples for the future by reshaping our business, while increasing our focus on mid-market customers in North America and categories beyond office supplies.”

>> Photo by Mike Mozart, Flickr/Creative Commons