Staples gets EU approval for Office Depot takeover

The European Commission has approved Staples’ proposed $6.3bn takeover of office supplies distributor Office Depot, subject to the divestment of some of the latter’s businesses in Europe.

Commissioner Margrethe Vestager, in charge of competition policy, said: "The substantial remedies package offered will ensure that effective competition is maintained, in particular on the EU's international office supplies market.

"This will allow European companies to continue to benefit from the Single Market by procuring their office supplies internationally and to reduce costs."

Staples has agreed to sell off Office Depot’s contract distribution business in Europe and its entire business in Sweden. In addition, the companies have decided they will also divest office Depot’s retail, online and catalogue operations in Europe.

The acquisition has now received approval from Australia, New Zealand, China, and Europe and Staples said it looked forward to “a full, impartial judicial review in the United States”.

The merger is the subject of ongoing litigation with the US Federal Trade Commission and the Canadian Competition Bureau.

Staples expects to deliver more than $1bn of annualised synergies net of investments to provide increased value to customers by the third full fiscal year post-closing.

It argued that the combined company will be better equipped to minimise redundancy, reduce costs and optimise its retail footprint.