The attorney said the FTC is reviewing mergers now by looking at their market shares pre-pandemic, and not what has happened in the last nine months But that should have little impact on this merger review, according to a DC antitrust attorney who spoke on the condition of anonymity. Meanwhile, it’s expected to argue that its combined retail chains no longer pose a monopoly threat given the increased availability to toners and ink cartridges for consumers.Īmazon likely has gained ground on Staples and Office Depot in the business-to-business market since the pandemic, since more people are working from home. On Monday, however, Staples signaled that it is willing to sell Office Depot’s commercial-business unit to satisfy regulatory concerns. In 2016, the FTC blocked a second proposed deal, that time on fears that the two retailers would combine their lucrative business units that cater directly to companies, raising prices for corporate customers.Īt the time, the FTC had argued that Staples and Office Depot would control 70 percent of the business-to-business market, with the next largest competitor only less than five percent. In 1997, the Federal Trade Commission blocked a proposed merger on fears that the combined chains would hold a monopoly over the US office-supplies market. Regulators twice before have successfully stopped Staples from acquiring Office Depot, each time for different reasons. The retailer said in a statement its board of directors was reviewing the offer and will consider potential regulatory stumbling blocks to the deal, including antitrust challenges. Office Depot shares on Monday surged 19 percent to $44.14 on the surprise buyout offer. The owner of the office-supplies giant said Monday it has offered $2.1 billion, $40 a share, for its longtime rival and could go hostile in March by making a tender offer if Office Depot refuses to engage in talks. Staples just made its latest takeover bid for Office Depot - and it’s hoping the third time’s a charm. New Jersey woman arrested for attacking Staples customer over mask dispute Old Board’way: NYC stores batten down the hatches ahead of election day Office Depot rejects Staples takeover offer, sends counterproposal KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.Crypto firms pay massive price tags to name arenas as sports teams weigh risks KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. Any rating opinions, analysis, projections, observations, data or other items constituting part of any information provided or distributed by KCP or KBRA are and must be construed solely as statements of opinion and not statements of fact. KBRA Credit Profile (KCP) is a research service and nothing herein or otherwise provided by KCP shall be construed as a rating. Regardless of the proposed acquisition's outcome, store closures in saturated markets appear inevitable because the retailers have shuttered relatively few stores despite their operational woes, and they have significant overlap in the markets in which they operate. At the time of its most recent bid for ODP’s consumer business lines, USR Parent, Inc., indicated it was confident in its ability to obtain antitrust approvals and close on a transaction in conjunction with its June 2021 acquisition offer. Staples has attempted to merge with ODP on several occasions, but previously proposed transactions failed to materialize because of antitrust concerns. Rival office supplies retailers Staples and ODP have experienced declining annual revenue and operating income in recent years because of decreasing demand for office supplies and increased competition-a trend that has been exacerbated by the COVID-19 pandemic. KCP observed significant exposure to near-term ODP lease expirations-52 properties securing $1.3 billion in CMBS debt have an ODP location with a lease expiration in 2021 or 2022. KCP examined our $725 billion coverage universe of over 1,100 CMBS transactions and identified 78 properties collateralizing 74 loans-$4.3 billion by allocated loan amount-across 173 CMBS transactions with exposure to an Office Depot or OfficeMax retail location. made a $1 billion cash offer to acquire ODP’s consumer business, including Office Depot/OfficeMax retail stores, websites, and intellectual property.
NEW YORK-( BUSINESS WIRE)-KBRA Credit Profile (KCP), a division of KBRA Analytics, releases a special report on CMBS exposure to The ODP Corporation, which owns Office Depot and OfficeMax, in light of a June 2021 acquisition offer from USR Parent, Inc., the parent company of Staples.