US Giants’ Stocks Slump After Trade Body Seeks to Block Takeover

© AP Photo / Chris O'MearaOleander flowers bloom outside the Staples store
Oleander flowers bloom outside the Staples store - Sputnik International
The stocks of the two largest office supply corporations in the United States, Staples and Office Depot, significantly fell after the US Federal Trade Commission announced it would seek to block the Staples’ $6.3 billion takeover of its rival.

WASHINGTON (Sputnik) — On Monday, the US Federal Trade Commission said it had filed an administrative complaint charging that Staples proposed $6.3 billion acquisition of Office Deport would violate US antitrust laws.

"Office Depot (ODP) has slipped 3.4 percent to $5.40, while Staples (SPLS) has declined 2 percent after the United States decided to sue to prevent their merger," Barons’ Blog, which tracks Wall Street stocks, noted.

The complaint alleged the merger would significantly reduce competition nationwide in the market for "consumable" office supplies sold to large business customers.

"The Commission has reason to believe that the proposed merger between Staples and Office Depot is likely to eliminate beneficial competition that large companies rely on to reduce the costs of office supplies," US Federal Trade Commission Chairwoman Edith Ramirez said.

Staples is the world’s largest seller of office products and services, and Office Depot is its closest competitor, the complaint noted.

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