The American Postal Workers Union (APWU) has released a second report concerning the Staples-Office Depot merger.
Under the title Bad for Business, the report argues that the deal would lead to higher prices and less choice for contract customers.
The report contains four main points:
• Analysis suggests that the proposed merger will effectively end competition for large and small commercial customers, as well as the general public.
• Regional players do not have the resources or capacity to compete on a national basis. Niche players in the B2B market lack the capacity to offer meaningful competition with a combined staples/office depot.
• Divesting OfficeMax will not create a true competitor – to win regulatory approval, staples/office depot may be asked to divest holdings of the former OfficeMax chain (absorbed by office depot in 2013). Even if this divestiture takes place, the data shows the combined entity will still be so large that meaningful competition will not be possible.
• Pre- versus post-merger landscape – if the merger is allowed, a combined staples/office depot will have nearly five times the sales of its nearest competitor. There will be no reasonable alternatives for large customers.
The APWU represents more than 200 000 active and retired workers of the US Postal Service. Its previous report “No Sale” focused on the impact of the merger on retail consumers.