Report: Staples May Freeze Prices To Get Office Depot Merger Approval

According to a report by the New York Post, Staples, Inc. SPLS told a federal judge it is committed to freezing its prices for the next three years to appease regulatory concerns and move forward its proposed acquisition of Office Depot Inc ODP. The Federal Trade Commission continues to argue that a combined Staples and Office Depot entity will hurt the competitive landscape. The two companies control between themselves an approximately 79 percent of the Fortune 100 office supply market. Related Link: Updated Staples-Office Depot Merger Math Shows 'Massive Potential' However, the New York Post quoted a former FTC official who said that Staples' offer to freeze its prices is a "gimmick" and only offered "when you are playing with a weak hand." Shares of Office Depot were trading lower by nearly 3 percent Monday morning while shares of Staples were lower by nearly 1 percent.