Postal Union Continues Effort to Stop Staples, Office Depot Merger

In a press release issued Thursday, the APWU said that it had gathered more than 5,000 signatures on its petition to stop the merger. The union’s petition included this statement:

This merger would give Staples a monopoly in a key sector of the economy. This is no game; it means higher prices and fewer choices for consumers. Let’s tell the FTC that consumers across the country want real enforcement of our nation’s anti-trust laws.

Earlier this week, Bloomberg reported that the U.S. antitrust officials are examining the impact of the merger on large corporate customers. The Federal Trade Commission (FTC) wants to find out if the merger will harm competition for corporate clients that typically buy office supplies in large quantities at discount prices.

The proposed merger would create a single national office-supply retailer that controls up to 80% of the large corporate market, according to a report cited by Bloomberg.

Earlier this month, Staples CEO Ronald Sargent told analysts that the company is responding to FTC requests for information and remains on schedule to close at the end of 2015.

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Staples stock was trading at $13.62 Friday morning, in a 52-week range of $11.39 to $19.40.

Office Depot shares were at $7.90 just after the opening bell, in a 52-week range of $4.26 to $9.77.

Under the terms of the merger offer, Office Depot shareholders will receive $7.25 in cash and 0.2188 shares of Staples stock for each share of Office Depot stock they own. At Thursday’s closing price, the Staples stock is worth about $3.00, making the total deal worth about $10.25 per share to Office Depot shareholders. Investors appear to be skeptical about the deal getting approved.