FTC rejects Staples' revised Office Depot bid

The Federal Trade Commission has rejected Staples' offer to revise its $6.3 billion acquisition of rival Office Depot, casting more doubt on the completion of a merger of the two largest office supply chains.

Staples (SPLS) said Monday that the FTC had rejected its offer to sell $1.25 billion of contracts in what it described as "an effort to create an acceptable remedy" to concerns that the combined company would have too much control of the commercial market for office supplies.

"The FTC rejected the company's offer without making a counteroffer," Staples said in a statement. "The company is still willing to continue negotiations with the FTC to reach a settlement that addresses FTC concerns."

The news comes two weeks after the FTC filed an administrative complaint challenging the deal.

Regulators are concerned that the two companies hold too much sway over the market for office supplies sold directly to businesses.

Staples shares fell 1% in pre-market trading to $9.30. Office Depot (ODP) shares were flat at $5.41.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.

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