Stationery companies on the move: Staples and OfficeMax to merge

Both companies are based in the US and supply products internationally. 

In New Zealand, Staples operates through Staples New Zealand Limited, supplying products direct to businesses, government agencies and other institutional buyers.

Office Depot works through OfficeMax New Zealand Limited, Croxley Stationery Limited and Armidale Industries Limited.
 

Like Staples, OfficeMax NZ sells its products direct to businesses and online, but also operates 16 retail office product stores throughout New Zealand.

Croxley manufactures, imports and sells stationery and technology products in a wholesale capacity, while Armidale makes and supplies suspension filing systems.
 

In its analysis of the merger, Commerce Commission focused on its impact on competition for government and large corporate customers, also considering what could happen to Croxley.

Commission chair Dr Mark Berry says it is satisfied the merger will not have the effect of substantially lessening competition in these markets.

“The workplace product market for government and large corporate customers is currently competitive, and we consider that the merged entity would continue to face competition from three companies – Fuji Xerox, Office Products Depot and Corporate Consumables. Each of these is eligible to supply across all workplace product categories under the recently announced All-of-Government procurement contract,” Berry says.

“In our investigation we also found that brand names have limited competitive importance, so we do not consider that the merged entity’s ownership of Croxley raises significant competition issues.”