Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC approves modified final order for Bi-Lo acquisition, (Jan 15, 2015)
Organizations Mentioned:Bi-Lo Holdings, LLC | Delhaize America, Inc. | Delhaize America, LLC | Etablissements Delhaize Frè | Le Lion” | Lone Star Fund V (U.S.), L.P. | SA/NV | res et Cie “
The FTC has approved a modified final decision and order resolving charges that grocery store operator Bi-Lo Holdings, LLC’s $265 million acquisition of 154 stores from Delhaize America would harm competition in markets in Florida, Georgia, and South Carolina, the agency announced today. Bi-Lo Holdings is the parent of the BI-LO, Harvey’s, and Winn Dixie grocery store chains.
According to the FTC complaint (In re Lone Star Fund V (U.S.), L.P, File No. 131-0162), Bi-Lo’s proposed acquisition of the Delhaize stores would likely harm consumers through higher prices, diminished quality, and reduced service levels in: Arcadia, Dunnellon, Lake Placid, Madison, and Wauchula, Florida; Bainbridge, Statesboro, Sylvania, Vidalia, and Waynesboro, Georgia; and Batesburg, South Carolina.
Under the proposed settlement reached in February 2014, the Commission required the merged Bi-Lo/Delhaize to sell 12 of the Delhaize stores to buyers identified in the proposed order. One of the upfront buyers, Rowe’s IGA, subsequently withdrew its commitment to purchase four Sweetbay stores located in Arcadia, Dunnellon, Lake Placid, and Wauchula, Florida, requiring Bi-Lo to continue and expand its efforts to identify an alternative buyer or buyers for those stores. Despite investing substantial time and effort, Bi-Lo has been unable to find buyers for three of those stores.
Accordingly, the FTC has issued its modified final order, which requires Bi-Lo/Delhaize to divest the store in Wauchula to Sunripe Market within 30 days of the Modified Order becoming final and no longer requires Bi-Lo/Delhaize to divest the four Sweetbay stores to Rowe’s IGA.
The Commission vote to approve the modified final order was 4-0-1, with Commissioner McSweeny not participating.
Companies: Lone Star Fund V (U.S.), L.P.; Bi-Lo Holdings, LLC; Etablissements Delhaize Frères et Cie “Le Lion” SA/NV; Delhaize America, LLC
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