On Tuesday, Staples, Inc. (NASDAQ:SPLS)’s shares declined -5.83% to $12.75.
Shares of Staples Inc. and Office Depot Inc. both tumbled on Tuesday, hurt by renewed concerns that the Federal Trade Commission will block the companies’ merger plan, according to the Bloomberg.
Deborah Feinstein, head of the FTC’s Bureau of Competition, is opposing the deal, according to a story in the New York Post, which cited an unidentified source. The FTC commissioners are predictable to rule by October, though Staples could ask for the deadline to be extended, the Post said.
“Things aren’t looking great for the deal, but I don’t think the fat lady has sung,” said Anthony Chukumba, an analyst at BB&T Capital Markets.
A merger of Staples and Office Depot would leave the U.S. with one major office-supply chain, raising antitrust issues. The FTC has been studying the impact on large corporate customers, people familiar with the matter told Bloomberg News last month. While consumers can pick up paper and pens anywhere, there are fewer options for companies that buy products in large quantities and depend on steady deliveries and discounted prices.
The most appropriate remedy is for Staples to divest a noteworthy portion of its delivery business, Chukumba said.
Staples, Inc., together with its auxiliaries, operates office products superstores. It operates through three segments: North American Stores & Online, North American Commercial, and International Operations.
Newmont Mining Corp (NYSE:NEM)’s shares dropped -6.22% to $15.60.
Newmont Mining Corp. may be interested in some of Barrick Gold Corp.’s assets — just not the ones it’s presently trying to sell, according to the Bloomberg.
After taking over operations this year at the Kalgoorlie Super Pit in Western Australia, Newmont would be interested in buying out Barrick’s 50 percent stake, Chief Executive Officer Gary Goldberg said Tuesday in an interview at the Denver Gold Forum. Mines in Nevada that Barrick is marketing are not of interest to the Greenwood Village, Colorado-based company, he said.
Gold’s more than 40 percent slump from a 2011 peak has miners scrambling to adapt in slightly different ways. Some, like Toronto-based Barrick, are downsizing to focus on key assets. Others such as Goldcorp Inc. are building war chests for future growth. In Newmont’s case, the focus is on improving asset quality in addition to selectively seeking acquisitions, Goldberg said.
Newmont Mining Corporation operates in the mining industry. It primarily acquires, develops, explores for, and produces gold, copper, and silver deposits. The company’s operations and/or assets are located in the United States, Australia, Peru, Indonesia, Ghana, and New Zealand.
At the end of Tuesday’s trade, Altria Group Inc (NYSE:MO)‘s shares dipped -1.10% to $54.19.
Anheuser-Busch InBev NV is close to lining up a group of banks to assist finance a takeover proposal for SABMiller Plc, and has sounded out the smaller brewer’s main shareholder about a deal, according to people with knowledge of the matter, according to the Bloomberg.
AB InBev reached out to Altria Group Inc., which owns about 27 percent of SABMiller, before it declared on Wednesday that it plans to make an approach for its smaller rival, the people said, asking not to be identified because the talk about are private. Altria has signaled it is open to considering a proposal, depending on the terms, the people said.
Banks, who have been scrambling to win a role on the potentially lucrative proceedings, are willing to offer more than $50 billion of debt for the acquisition, one of the people said. A takeover proposal may come as soon as a financing package is in place, they said. AB InBev is keen to reach a friendly deal, one of the people said.
Altria Group, Inc., through its auxiliaries, manufactures and sells cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes primarily under the Marlboro brand; cigars principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky, and Marlboro Snus brand names
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