In the Matter of Staples/Essendant, Inc., File No. 1810180 #01821

Submission Number:
01821
Commenter:
Elizabeth Struthers Malbon
State:
Virginia
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. The public is not fooled by this tactic to increase the wealth of the wealthy at the expense of competition, access to goods and services, and jobs for everyone else. I am old enough to remember when conservatives were in favor of competition and the free market system. But now that the rich have gained power by means of their wealth, competition is being snuffed out to their own advantage. What hypocrisy and selfish greed!