Super Lawyers
The top Attorneys in Virginia and
the Washington, D.C. metropolitan
area, only 5% of the attorneys
in the state are named in SuperLawyers
ATA NBTA | The National Board of Trial Advocacy Association of Trial Lawyers of America Virginia Trial Lawyers Association National Asociation of Distinguished Counsel | Nation's Top One Percent | NADC

U.S. regulators approve office-supply chain merger

In February 2013, Office Depot Inc. and OfficeMax Inc. announced plans to combine in a proposed $1.17 billion transaction. The merger of the two office supply chains with locations in Virginia and nationwide recently received approval from U.S. Federal Trade Commission regulators who found that the popularity of online retailers ensured competition in the office supply market.

The FTC had rejected a proposed purchase by Staples Inc. of Office Depot in 1997 on the grounds that the acquisition would be anti-competitive. However, it found that the market today has changed significantly since then. Staples is the leading office supply retailer in the country with $24 billion in sales every year. The combination of Office Depot and Office Max will create a company with $18 billion in sales.

The chief executive officer of Office Depot said that the merger will provide a new start to both companies and create a company that is stronger and more efficient. The move will give the companies more power when dealing with vendors and allow them to close stores that are under preforming. The merger is expected to save the new company $600 million in costs, not including any stores that may be closed as a result of the the transaction.

Mergers and acquisitions of any size can be complicated transactions. Certain types of combinations may present antitrust concerns that may require regulatory review, while others may be subject to federal and state corporate and securities laws. An attorney with experience in business transactions may be able to review a company's proposed expansion plans and help satisfy all applicable compliance requirements.

Source: Bloomberg, "Office Depot Merger With OfficeMax Wins U.S. Approval", David McLaughlin & Matt Townsend, November 01, 2013

No Comments

Leave a comment
Comment Information

DISCLAIMER: This website is designed to provide only general information; nothing contained herein constitutes legal advice nor is it an offer of legal representation. Use of this website is not intended in any way to create or convey the impression that such use of the website by any person, organization, or entity of any nature and/or kind constitutes any attorney-client relationship whatsoever and any information provided in this website shall not constitute legal advice. The use of any electronic communication available through this website with the Law Office of Richard L. Downey or any person associated with this website shall not constitute attorney-client relationship nor will any communication received by the Law Office of Richard L. Downey constitute an attorney-client communication. The Law Office of Richard L. Downey cannot make any guarantees as to the accuracy or currency of any information contained in or created in this website or the use of any link to another website contained in this website. The information that you obtain at this website is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice concerning your own particular situation.

*The National Board of Trial Advocacy is accredited by the American Bar Association. Currently there is no procedure in the Commonwealth of Virginia for approving certifying organizations.