I just went back to read the report that the FTC issued on November 1, 2013 on the conclusion of the ODP and OMX merger. Based on that report, I would be shocked if they concluded not to approve the SPLS/ODP merger. At the very worse case - the FTC could have conditions of the deal. At that point SPLS would need to conclude that it still is a good deal. Classic government - BS.
Staples and Office Depot have surrounded themselves with a lot of smart people. The wording on the latest press releases feel very positive. Their lawyers would not allow such positive comments if they had a lot of concerns about the FTC not approving the transactions. In addition, Staples did their homework prior to entering into this transaction. They had full access to the work that was done on the ODP/OMX transaction and the FTC. They need to pay about a $250 million to ODP if the deal is not approved by the FTC. Take that along with about $250 million in legal and internal cost - $500 million is a lot to spend on a deal that you do not think will close. Hang on gang - this deal will close.
I agree with you on the deal closing. I feel the FTC asked for 45 days, instead of 30, just to make sure they do their job thoroughly. They would of asked for more time after 30 days any way, so it makes perfect sense to go ahead and get 45 days now. I expect the deal to close by the end of November. With one larger, stronger, national retail company the consumer will benefit instead of having two more spread out companies that are much weaker and less consumer oriented because they would have to cut more costs and provide less service to keep afloat. People will not drive more than 5 miles to go to an office retailer if there is another store closer. The consumer will benefit from this merger.
I expect the FTC will do what's best for the consumer here and approve the Office Depot and Staples merger.
I'm surprised by the stock action of late but expect this deal to be approved. I feel the Federal Trade Commission(FTC) and SPLS/ODP will make this deal happen, even if concessions need to be made, to allow for the deal's closure. The FTC should recognize that this deal makes sense and will not harm competition. Retailers will be able to shop at more locations and all from one stronger national chain. If not approved more SPLS and ODP stores will close making it worse for the consumer. Everything that can be bought at their stores can be bought at Wal Mart, Target, Amazon, VistaPrint and several many more retailers to include grocery stores, dollar stores, and Best Buy.
The technicians have taken over ODP stock but the fundamentals and FTC should put an end to it. The 45 day clock started last week and I expect the deal to close by the end of November.
I am surprised that the FTC is taking this much time to conclude on the transaction. From a business stand point it will help the survival of 2 Companies and the employees. The risk of increase in the cost of office supplies is minimal. Everyone sells office supplies and with the internet the market share that a joint company would have is still not material. Plus and this is the big part, the cost of entry to this industry is not hard. Another good fit for ODP would be Best Buy. Best Buy has a lot of the same suppliers and would be a way for BBY to expand. I am still keeping my fingers crossed that this deal closes.
There were many DM's who left in my area a couple years ago, and some of them went to work for Mary Lawley at Tractor Supply Co lol. Idk if you remember her, but she was RVP basically of the east coast. My then DM told me she was fired for filing personal items in her extensity account. Actually that DM now works for her again lol. Cheryl Crocker was an amazing RVP and could know more about almost every aspect of your store in 10 min looking at your P&L than even you could looking at it regularly. They lost a very brilliant RVP when she quit. The writing was on the wall for all of them, even just a couple years back.
Many markets are over saturated with Staples and OD stores, there will be some consolidation for certain, and warehouse consolidation will save them a ton. I no longer live in the market I worked, I'm just glad I'm out of that mess and working for a company that isn't just looking out for people in corporate.