In the Matter of Staples/Essendant, Inc., File No. 1810180 #01556

Submission Number:
01556
Commenter:
Steven Berge
State:
California
Initiative Name:
In the Matter of Staples/Essendant, Inc., File No. 1810180
The FTC needs to step in and block this Staples/Essendant merger, as it presents an unacceptable threat to competition. Private equity related mergers deserve heightened scrutiny as private equity funds often remove companies from the markets in which they were situated at time of acquisition, or drastically reduce the scale of their operations, leading to anti-competitive outcomes by reducing the number and scope of firms in a given market. After the great recession, private equity funds have turned to acquisitions to increase profits but this routinely comes at the expense of a company's ability to compete, retain market share, or retain employees. Companies get loaded up with debt and are unable to survive. The FTC needs to stop the Staples/Essendant merger and generally scrutinize the anti-competitive practices of private equity when assessing private equity-driven mergers. This is another case of the rich getting richer at the expense of the many. We don't need this in the richest country in the world where about half the people are now in poverty. A critical mass of citizens is developing where they are disgusted with "the system" that has caused declining living standards for the majority over the last 4 decades. I appreciate your consideration.