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Staples, Office Depot extend merger agreement


Staples is giving itself three more months before calling off its proposed $6.3 billion acquisition of Office Depot, giving the companies time to fight an antitrust lawsuit with the Federal Trade Commission.

The companies announced Wednesday that they intend to waive the merger agreement termination date of Feb. 4 and extend it to May 16. The extension allows for the completion of ongoing federal district court litigation with the Federal Trade Commission. The companies are working to extend financing terms for the transaction, and expect to execute the merger extension agreement once financing terms are finalized.

“This merger creates an unparalleled opportunity to better serve our customers and to deliver shareholder value,” said Ron Sargent, CEO of Staples. “We are committed to completing this transaction and look forward to a full and impartial judicial review.”

On Feb. 4, 2015, Staples and Office Depot entered into a definitive merger agreement to combine as a single company. The FTC sued to block the deal in early December, arguing the combination would control 70% of the U.S. market for office supplies purchased by large national customers.

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