FTC Rejects Staples’ Raised Divestiture Offer To Buy Office Depot

Confirming previous media reports, Staples has reported that the Federal Trade Commission has rejected the company’s latest divestiture offer to acquire Office Depot, without making a counteroffer, according to the retailer.

Staples said it had proposed divesting up to $1.25 billion of commercial contracts in an effort to create an acceptable remedy to the FTC.

The company said it is still willing to continue negotiations with the FTC to reach a settlement that addresses FTC concerns. At the same time, Staples said it is pursuing the transaction through litigation. The company stated that is “confident in its legal position and looks forward to a full and impartial judicial review of the matter.”

Last week, media reports indicated that Staples had initially offered to divest $500 million in commercial contracts, a move the FTC rejected as inadequate.

In early December, the FTC filed a motion to stop the deal, saying Staples acquisition of Office Depot would hurt big customers that have national contracts to buy office supplies.

The $6.3 billion deal between the office superstores was first announced in February.