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Federal Trade Commission Makes Horrific Merger Decision

It is amazing sometimes the way that our Federal Regulators operate, as they prevent some industries from consolidating and due to political pressures disallow others. Indeed the business office supply business is completely competitive and the move by Staples to acquire Office Depot should have been allowed because Staples early on could not get the funding needed to expand as fast a Office Depot. Staples runs a tight ship and needs more locations for economies of scale and to compete with Office Max, Corporate Express and online Office Supply companies.

The Federal Trade Commission rather than understanding the dynamics of the industry and the reality of the market place and its history has yet totally botched another deal, which is needed to help the consumer and industry work towards servicing the market place. Without the Office Depot Staples merger the consumer will be harmed with less service in the Office Depot Stores as they cut thousands of jobs.

The Federal Government regulators in the opinion of many analysts reviewing this proposed merger is yet another example of poor management? And may I ask what a few 26 year old type reviewers and government regulators know about office supplies? Heck the government wastes more money on paper clips per year than the amount of this merger deal. Consider this in 2006.


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