Earlier this year, Staples announced its agreement to acquire the Boca Raton-based Office Depot for $6.3 billion. The Federal Trade Commission is set to make their decision tomorrow concerning the proposed acquisition, potentially ending 10 months of uncertainty over its regulatory decision.
Robert Brighton, Jr., a partner in our Ft. Lauderdale office, has been following the potential merger and has been repeatedly sought for his opinion on the acquisition. In the latest Sun Sentinel article on the merger, Brighton comments that the FTC "doesn't necessarily want to stop the merger - they just want to address concerns."
These concerns include considerations about eliminating a large competitive player in the industry, potentially raising prices for consumers. In addition, Staples is based in Massachusetts, while Office Depot's headquarters is in Boca Raton. This could implicate cutting jobs in order to cut costs.
Although not mentioned in the article, Brighton adds that Office Depot received millions in state and local tax incentives just over a year ago to keep its corporate facility in its current location.
To read the latest Sun Sentinel article on the merger, click here.
- "Companies worried about secrets falling into hands of Office Depot, Staples," Sun Sentinel, January 19, 2016
- "Staples forced to weigh costs of battle to merge with Office Depot," Sun Sentinel, December 11, 2015
- "Staples-Office Depot merger uncertainty could be resolved by Tuesday," Sun-Sentinel (December 4, 2015)
- "Staples-Office Depot to receive FTC decision on merger by Dec. 8," Sun-Sentinel (October 12, 2015)
- "Potential merger raises antitrust questions," Sun-Sentinel (February 6, 2015)
- "Office Depot, Pratt & Whitney approved for millions in job incentives," South Florida Business Journal (August 20, 2014)