Report: Feds set to stop Staples, Office Depot merger

U.S. regulators are poised to block the proposed merger of Office Depot and Staples unless the companies deliver concessions amid concerns of their combined share in the market for corporate office supplies, according to the New York Post.

The New York Post reported late Sunday that Federal Trade Commission authorities are "leaning against the deal and are preparing to block it."

The two office supply giants had announced last month that they had won an extension on the review process through Dec. 8, when the FTC must decide whether to approve the transaction or take legal action against it.

Staples (SPLS) in February agreed to acquire Office Depot for $6.3 billion, but the deal immediately encountered regulatory scrutiny.

Citing anonymous sources, the Post said the four-member FTC panel in charge of reviewing the deal is split, with two members in favor and two opposed. The two members who are currently opposing the deal are said to be concerned about the pricing power the combined company would have in the market for corporate office supplies.

An FTC spokesperson declined to comment.

Representatives of Staples and Office Depot (ODP) were not immediately available for comment Monday morning.

Office Depot shares fell 2% to $6.63 at 2:03 p.m., while Staples shares rose 2% to $12.07.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.