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Staples says FTC rejected updated offer of Office Depot

FILE - This combination made with 2009 file photos shows signage for a Staples store in Springfield, Ill., top, and an Office Depot store in Miami Springs, Fla. Staples said Monday, Dec. 21, 2015, that regulators have rejected its offer to sell $1.25 billion in contracts, part of its plan to ease monopoly fears as it attempts to acquire rival Office Depot. (AP Photo/Seth Perlman, Alan Diaz, File) FILE - This combination made with 2009 file photos shows signage for a Staples store in Springfield, Ill., top, and an Office Depot store in Miami Springs, Fla. Staples said Monday, Dec. 21, 2015, that regulators have rejected its offer to sell $1.25 billion in contracts, part of its plan to ease monopoly fears as it attempts to acquire rival Office Depot. (AP Photo/Seth Perlman, Alan Diaz, File)

By Wire Service December 22, 2015 2 min read

Closer to home

Staples has stores in East brainerd, Hixson, Cleveland and Athens, Tenn., and Office Depot has stores in Brainerd, Fort Oglethorpe and Hixson.

Staples offered to give up $1.25 billion in commercial contracts to acquire Office Depot, but federal regulators have rejected it, the company said Monday.

The Federal Trade Commission, which is suing to stop the $6.3 billion merger, declined comment on Staples’ claim.

Staples said it will continue its court fight to acquire its competitor headquartered in Boca Raton, Fla.

“The company is confident in its legal position and looks forward to a full and impartial judicial review of the matter,” Staples said in a news release.

Staples said it proposed the divestiture – more than twice the amount previously noted in its a pre-trial hearing – to allay the FTC’s concerns that the merger would reduce competition in the commercial market, forcing companies to pay more for bulk office supplies.

“The FTC rejected the company’s offer without making a counteroffer,” Staples said, adding that the company is “still willing to continue negotiations with the FTC to reach a settlement.”

The FTC said Dec. 7 that it had unanimously voted to reject the merger, filing a request for a preliminary injunction in federal court. Staples and Office Depot responded that they would fight the FTC’s decision.

A hearing on the preliminary injunction is scheduled for March 21. A trial is set to begin May 10, but negotiations for a potential deal continue.

If Staples completed the merger, it has said the combined company will be based in Framingham, Mass.