Postal union concerned about Staples merger
Staples' bid to buy its chief rival, Office Depot, has been knocked by the American Postal Workers Union (APWU), which told Federal Trade Commission investigators that the merger proposed by the Framingham company would create a monolithic entity akin to “Godzilla” that would dominate rivals in the office-supply market.
The APWU made its case based on a study that it said found the combined sales of the merged company would be 14 times greater than its largest rival, the APWU said in a statement following their appearance before trade commission investigators.
Among the union's assertions are that government contracts that would be spun off to create parity in the market could easily return to the company and that Internet companies do not represent true competition.
Staples has already received regulatory approval from the government of New Zealand. The country's Commerce Commission ruled that the planned merger, valued at $6.3 billion, would not impact competition in the industry for government and large corporate customers.
The FTC staff are expected to make a decision on Dec. 8. Staples must seek regulatory approval in the U.S., the European Union, Canada, Australia and China before the merger can proceed.
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