Staples

Competition Bureau challenges Staples – Office Depot merger

Office supplies industry becoming too concentrated says federal agency

The Competition Bureau is challenging a proposed merger between Staples and Office Depot, saying the country’s office supplies industry is becoming too concentrated.

The federal agency has filed an application with the Competition Tribunal raising concerns over how dominant Staples would be if its proposed US$6.3 billion acquisition of Office Depot is given approval.

Office Depot operates the Grand & Toy retail and supplier in Canada.

The Competition Bureau says the deal would give Staples more than 80% of office product sales in Canada, which would “substantially lessen competition” and likely drive prices higher.

It says the impact wouldn’t just hit consumers, but also for-profit and not-for-profit businesses, governments, health care organizations and educational institutions representing more than $500 million in sales each year.

Also Monday, the U.S. Federal Trade Commission filed a lawsuit seeking to block the Staples transaction.

It’s the second time the FTC has attempted to block a merger of the two companies, after a successful ruling in 1997.

Photography by Associated Press
Add a comment

You must be to comment.

Brands Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

Diageo’s ‘Crown on the House’ brings tasting home

After Johnnie Walker success, Crown Royal gets in-home mentorship

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

Volkswagen bets on tech in crisis recovery

Execs want battery-powered cars, ride-sharing to 'fundamentally change' automaker

Simple strategies for analytics success

Heeding the 80-20 rule, metrics that matter and changing customer behaviors

Why IKEA is playing it up downstairs

Inside the retailer's Market Hall strategy to make more Canadians fans of its designs