What once was a promising merger is now turning into a big mess. The Federal Trade Commission is moving to block the Staples and Office Depot merger with a lawsuit, according to Reuters. The deal originally had Staples Inc., buying out its biggest competitor, Office Depot Inc.
The deal, which was announced in February, had many people worrying about the monopoly that would be created if the two companies merged, according to the New York Times.
Both companies plan on fighting the complaint, according to the Boston Globe. A joint statement released by the two companies called the logic behind the decision, "Flawed analysis," according to the New York Times.
"This merger creates an unparalleled opportunity to better serve customers of Staples and Office Depot," said Staples Chief Executive Ron Sargent, according to the New York Times.
FTC Chairwoman Edith Ramirez also gave a statement. "The commission has reason to believe that the proposed merger between Staples and Office Depot is likely to eliminate beneficial competition that large companies rely on to reduce the costs of office supplies," she said, according to Reuters.
This isn't the first time a merger has been stopped between the two companies. In 1997, the FTC successfully stopped a merger between Staples and Office Depot for similar reasons, according to the Boston Globe.
