Proposed merger between staples and office depot leads to concerns of higher prices michael baye and patrick scholten prepared this case to serve as the basis for classroom discussion rather than to represent economic or legal fact. Oppenheimer analyst brian nagel views the outlook for office products retail and its leading chains as more and more precarious, following the decision of a federal judge to side with the federal trade commission and halt the proposed merger of staples (spls) and office depot (odp. Proposed merger between staples and office depot leads to concerns of higher prices 1 in september, 1996, staples agreed to acquire the assets of office depot at the time, staples, office depot, and office max were the three largest office supply retailers in the united states. The laws of mergers and acquisitions one such example included the case of “staples, inc a superstore retailer wanted to merge with direct competitor office depot, another giant retailer of office supplies arguing the combination could have led to higher prices and less competition microsoft and intuit cancelled the deal a month. A federal judge has blocked the proposed merger of staples and office depot, saying the government had made the case that the merger had a reasonable probability of hurting competition in office.
The transaction follows closely on the heels of the office depot/officemax merger in 2013 and would complete a rapid 3-1 consolidation of the office supply superstore (oss) market. Econometric evidence played an important part in the litigation of the federal trade commission's (ftc's) successful challenge to the proposed merger of staples and office depot. Abstract both economists and political scientists have made important contributions to the field of public policy analysis economists have stressed the roles of competition.
Addressing the ftc’s concerns, staples/office depot offered to sell a series of stores to rival officemax, but the ftc maintained its opposition to the merger although the merging parties contested the ftc’s challenge, the courts eventually ruled in favor of the ftc. A federal judge tuesday, may 10, 2016, blocked the proposed merger of staples and office depot, saying the government had made the case that the merger had a reasonable probability of hurting. View existing questions and tutorials categorized under the subject finance and finance. Proposed merger between staples and office depot leads to concerns of higher prices.
Proposed merger between staples and office depot leads to concerns of higher prices firms like papa johnâ€™s, dominoâ€™s, and pizza hut sell pizza and other products products and services provided by the industry the ceo of a hypothetical multinational enterprise. From the recently challenged staples-office depot merger to the abandoned comcast-time warner merger to the heavily scrutinized aetna-humana merger (among many others), there has been a wave of potential mega-mergers throughout the economy—many of them met with regulatory resistance. Staples, inc , the ddc found a likelihood that prices would be higher with the merger of staples and office depot than without their merger thus, the court held that the merger would lessen competition because of the merged firm’s increased ability to raise prices unilaterally. Staples office depot the commission successfully challenged a merger between staples, inc and office depot, inc, two of the three national office supply superstore retail chains the commission found, and the court agreed, that entry was unlikely to prevent anticompetitive effects arising from the merger. Staples and office depot abandon merger after successful ftc challenge staples and office depot abandoned their proposed $63 million merger following a ruling by the united states district court that the merger was likely to substantially impair competition in the sale and distribution of consumable office supplies to large business-to-business customers.
The ftc says it successfully blocked two proposed mergers between hospitals in pennsylvania and chicago, and negotiated settlements in several other pharmaceutical related mergers, including generic drugs used to treat conditions such as colitis, epilepsy, and several generic injectable drugs. In the staples-office depot case, jerry hausman, an economist at mit and a consultant to staples, contends that the ftc misread the evidence by comparing prices in markets where the chains. Previous post previous proposed merger between staples and office depot leads to concerns of higher prices next post next james baldwin: go tell it on the mountain order management. Case study #1, “proposed merger between staples and office depot leads to concerns of higher prices” what arguments have staples and office depot made in defense of the proposed merger.
They charge higher prices in those parts of country where they do not compete against each other and lower prices where they are rivals (micheal bayes, case: proposed merger between staples and office depot leads to concerns of higher prices, pg 2. Ottawa -- the competition bureau is challenging a proposed merger between staples and office depot, saying the country's office supplies industry is becoming too concentrated. In 2016, carl shapiro supported the us ftc throughout its review of the proposed $63 billion merger of staples and office depot the court cited shapiro’s reports and testimony at least 45 times in a 74-page decision granting an injunction against the deal. • the proposed acquisition of office supplies distributor office depot by its competitor staples, provisional higher prices, less choice and reduced innovation for mobile telecommunications customers in the (m7612, ip/15/5956, 30102015) eu competition & regulatory 30 october – 5 november 2015 quick links: article merger control.
The empirical analysis went still further with last year's proposed merger of staples and office depot, two chains of office-supply “superstores” in america. Proposed merger between staples and office depot leads to concerns of higher prices the cuban war of independence leave a reply cancel reply you must be logged in to post a comment live chat latest posts the real reason for crm implementation failure cheap, fast and secure custom writing. The merger, the ftc alleges, would lead to higher prices and less options for big corporations that make purchases of office supplies in bulk amounts. The proposed mci worldcom – sprint merger mci worldcom and sprint corporation announced a merger agreement on october 5th mci worldcom offered $129 billion in stock and debt to top a rival $100 billion bid from bellsouth for sprint (s) in october 1999.