NEW YORK (TheStreet) -- Shares of Staples (SPLS) are advancing by 3.45% to $8.69 in pre-market trading on Wednesday, as European regulators approved its $6.3 billion acquisition of Office Depot (ODP).

The European Commission approved the purchase on the condition that Staples sell Office Depot's European contract business and its operations in Sweden, according to a company statement.

The office supplies companies will also divest Office Depot's retail, online and catalog operations in Europe.

"This is a significant step, and we're very pleased that the European Commission has approved this transaction," Staples CEO Ron Sargent said in a statement on Wednesday morning.

"We look forward to a full, impartial judicial review in the United States," he added.

In December, the Federal Trade Commission filed a complaint to block the deal saying that it would reduce competition in the market for consumable office supplies sold to large business customers.

The takeover has been approved in Australia, New Zealand, China and Europe.

Shares of Office Depot are up by 2.54% to $5.04 in pre-market trading on Wednesday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that has been evaluated.

At the same time, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: SPLS

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