In the Matter of Staples/Essendant, Inc., File No. 1810180 #02919

Submission Number:
02919
Commenter:
Bonita Knapp
State:
Florida
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. And is it true that the lead counsel who negotiated the merger for Staples had previously been the head of the FTC division that reviewed mergers like these? Just another example of the "revolving door" between large corporations and the agencies that are supposed to regulate them -- and how that revolving door undermines the public interest. Americans should feel you represent our nation's best interests and therefore, your constituents' interests, as well. Protect Americans from this abuse.