Staples wins approval for Corp Express takeover

By Gilbert Kreijger

AMSTERDAM (Reuters) - U.S. office goods supplier Staples (SPLS.O) won approval from the European Commission for its 1.7 billion euro ($2.6 billion) takeover bid for Dutch peer Corporate Express CXP.AS on Wednesday.

Corporate Express Chief Executive Peter Ventress, who initially rebuffed the Staples offer, said on the sidelines of a shareholders' conference the Corporate Express graphics unit may be a candidate for divestment after the merger.

So far, Staples has not detailed any major cost cuts or job losses as a result of the merger, expected to close in July.

"Maybe at some point in time, it (graphics) may not be part of the business, but at this moment we are pleased with the unit," Ventress told Reuters.

Staples raised its all-cash offer to 9.25 euros per share from 9.15 euros last week, winning the backing of Corporate Express, which also ditched its own deal to buy French privately-owned competitor Lyreco.

"The Commission's decision not to oppose the transaction constitutes the final regulatory clearance requirement for the offer," Staples said in a statement late on Tuesday.

U.S. and Canadian regulatory authorities have already approved its Corporate Express bid.

For Staples, the deal expands its presence in the company contracts business in Europe and North America, where it competes with Office Depot (ODP.N) and OfficeMax (OMX.N) as well as Corporate Express.

Frank Meysman, chairman of Corporate Express's supervisory board, told shareholders at an extraordinary meeting that the company had "fantastic performance" during the second quarter, but did not give further details.

Meysman also said that market consolidation was inevitable. "In our market consolidation is a logical movement."

Staples's tender offer runs to June 27. Last week, it said it owns 13.4 percent of Corporate Express while holders of about 23.3 percent of the Dutch company have committed to accept its offer.

The offer will be declared unconditional if it gets 51 percent of Corporate Express shares.

The shareholders meeting was convened on Wednesday to discuss Staples's offer.

Meysman said Corporate Express accepted the revised Staples offer as it could not get majority support for the Lyreco deal.

"Our choice was determined by the situation which was that there a majority of shareholders would not support the Lyreco bid. Then there was no reason any more for the Lyreco deal," Meysman said.

(Additional reporting by Foo Yun Chee; Editing by Paul Bolding)