Office Depot cancels merger with Staples

Office Depot Inc (ODP) has decided to cancel plans of merging with Staples Inc (SPLS) in May because of problems related to antitrust and announced that it would close 300 of its stores in the following three years in order to save the company some $250 million by 2018. Wednesday morning the company's shares increased by 6% to $3.49. At the end of the second quarter this year, Office Depot had closed up to 400 stores nationwide and posted a decrease in sales for the previous seven months. Online retailers such as (AMZN) have made the market more competitive in the market. The retailer was forced to decrease its predicted income 2016 from $500 million to between $450 million and $470 million. It also reduced its spending budget for this year by $75 million to $175 million and in the previous quarter, the company reported a total income of $210 million, around 38 a share.