eco mid - StaplesandOfficeDepotProposedMerger

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Staples and Office Depot – Proposed Merger Office superstores provide convenient, reliable and economical source of office supplies for small business and individuals  with home offices.  Lot of firms entered  the market after the idea was conceptualized.  These firms  competed aggressively, developing office superstores as a one-step destination, carrying a full line of  consumable office supply items as well as assorted other products. Staples - 2nd Largest Office superstore chain in the United States. 52% of its revenue comes from office  supplies. Balance come from sale of computers, office furniture and other related business. Office Depot   – Largest Office superstore chain in United States. Leads in terms of number of stores,  competitor. OfficeMax – Issue   – On Sep 14, 1996, Staples and Office Depot entered into an agreement whereby Staples would  acquire the stock and assets of Office Depot for $4 billion. The combined company will have annual sales  that exceed $10 billion. Staples and Office Depot merger might eliminate the competition and create a  monopolistic market. Is this merger against the interest of the consumers? Absent the merger both companies were competing with each other head on and the consumer were 
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This note was uploaded on 05/25/2011 for the course ECO 6170 taught by Professor Lindanorton during the Spring '11 term at Miramar College.

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eco mid - StaplesandOfficeDepotProposedMerger

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