The Commissioner of
Competition is challenging a proposed merger that he claims
would result in the consolidation of 80% of the Canadian
office products market under a single banner.
In a $6.3 billion deal, Staples Inc. seeks to acquire the global
business operations of its primary competitor, Office Depot Inc.,
including its Canadian subsidiary Grand & Toy Ltd. Both
companies supply office products, including paper, ink and toner,
office furniture, and breakroom and janitorial supplies across
Canada.
Following a review of the notifiable transaction, the
Competition Bureau concluded that the proposed merger would likely
result in a substantial lessening of competition in the office
products market, with particular impact on institutional
and business-to-business purchasers. The Bureau fears
that the remaining market participants, most of which are
affiliated with the buying group Basics Office Products, will be
unable to constrain the combined market power of
