FTC rejects Staples merger with Office Depot

WASHINGTON, Dec. 21 (UPI) -- Staples Inc.'s offer to revise its $6.3 billion acquisition of competitor Office Depot Inc. was rejected by the Federal Trade Commission.

Regulators say they suspect the merger of the United States' two largest office-supply companies would give the new company too much power in its segment of the market providing supplies directly to businesses. The rejection comes two weeks after the FTC challenged the proposed acquisition in an administrative complaint.

In a statement Monday, Staples said if offered to divest up to $1.25 billion in commercial contracts in response to the FTC's concerns, adding it did not receive an FTC counteroffer, and was willing to "continue negotiations with the FTC to reach a settlement."