Report: FTC Has 'No Interest' In Approving Staples-Office Depot Merger

Staples, Inc. SPLS proposed acquisition of Office Depot Inc ODP risks being denied, according to a report by the New York Post. According to the publication, the Federal Trade Commission (FTC) has "no interest" in approving the $6.3 billion merger. Staples is currently engaged in discussions with the FTC over concerns that a merger could result in higher prices for consumers. Staples has previously proposed selling corporate contracts to smaller firms that total $1.25 billion. However, the contracts span just 1 year and Staples may be able to win the contracts back in the future, resulting in a back-and-forth battle between the company and the regulatory bodies that are required to sign off on the merger. The New York Post quoted a source who said "the odds of a settlement are near zero." Shares of Staples have lost more than 45 percent over the past year while shares of Office Depot closed for trading at $5.32 - noticeably lower than the $11 per share the stock was valued at when the acquisition offer was initially announced in early 2015.