Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Albertson’s acquisition of regional grocery chain conditionally approved by FTC, (Dec 23, 2013)

By Jeffrey May, J.D.

Grocery store operator Albertson’s LLC has agreed to sell two stores in Texas to settle FTC competition concerns over its proposed acquisition of regional grocery retailer United Supermarkets LLC. According to the FTC’s complaint, the proposed merger of Albertson’s and United is likely to reduce competition in local grocery markets within Amarillo and Wichita Falls, Texas. Under the terms of a proposed FTC consent order, Albertson’s will sell its lone stores in Amarillo and Wichita Falls, Texas, to a Commission-approved purchaser (In the Matter of AB Acquisition LLC, FTC Dkt. C-4424, File No. 131 0227).

Albertson’s operates 606 grocery stores primarily in the southern and western United States, including 72 in Texas. United is a regional grocery retailer with 51 traditional and specialty supermarkets and seven convenience stores across North and West Texas.

The FTC alleged that the relevant markets of West Amarillo and Southwest Wichita Falls were highly concentrated. The proposed merger reduced the number of supermarket competitors in the relevant geographic markets from three to two in both West Amarillo and Southwest Wichita Falls, according to the FTC.

Albertson’s has agreed to sell the stores to MAL Enterprises, Inc., which operates under the Lawrence Brothers IGA, Cash Saver, and Save-A-Lot supermarket banners. The proposed consent order also would prohibit Albertson’s, for a period of one year, from interfering with Lawrence Brothers’ hiring or employment of any employees currently working at the Albertson’s stores in Amarillo and Wichita Falls. Additionally, for a period of 10 years, Albertson’s would be required to notify the Commission prior to acquiring an interest in a supermarket that had operated or is operating in Amarillo and Wichita Falls.

Companies: Albertson’s LLC; United Supermarkets LLC; MAL Enterprises, Inc.

News: Antitrust FederalTradeCommissionNews