Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC approves SCI’s applications to sell funeral assets under order settling anticompetitive acquisition charges, (May 13, 2014)

The FTC announced yesterday that it has approved an application by Service Corporation International (SCI) to sell certain funeral and cemetery assets to StoneMor LP. The divestiture is required under a consent order approved in December 2013 to settle charges that SCI’s acquisition of Stewart Enterprises was likely to substantially lessen competition.

According to the FTC complaint (In re Matter of Service Corporation International, File No. 131-0163, Dkt. No. C-4423), SCI’s proposed acquisition of Stewart was likely to substantially reduce competition in violation of federal antitrust law in each of 59 local markets identified by the agency. The complaint alleged that each of these local markets for funeral and cemetery services was highly concentrated, and that the deal as proposed would eliminate direct competition between the two firms. The FTC charged that the proposed deal would enable the merged firm unilaterally to raise prices charged to consumers in these local markets and would substantially increase the risk of collusion between SCI and the few remaining competitors in the affected local areas.

The consent order required the combined SCI/Stewart to divest 53 funeral homes and 38 cemeteries to ensure that competition was maintained in 50 counties throughout the United States. Through this action, the FTC has approved the divestiture of 13 funeral home and cemetery properties in Florida, North Carolina, Pennsylvania, and Virginia to StoneMor Partners LP. The approval was given following a public comment period.

The Commission vote to approve the application was 5-0.

The FTC has also approved SCI’s applications to sell certain funeral and cemetery assets in California, Louisiana, Virginia, Florida, and Mississippi.

The FTC has approved the divestiture of two businesses located in Lancaster, California to Angeleno Mortuaries, Inc. and approved a facilities agreement between Angeleno and S.E. Funeral Homes of California.

The FTC has approved the divestiture of assets in Louisiana and Virginia to Carriage Services, Inc., and in Florida and Mississippi to Legacy Funeral Holdings, Inc., Legacy Funeral Holdings of Florida, LLC, and Legacy Funeral Holdings of Mississippi, LLC.

The Commission vote to approve the applications was 5-0

Companies: Service Corporation International; Stewart Enterprises, Inc.; StoneMor Partners LP; Angeleno Mortuaries, Inc.; Legacy Funeral Holdings, Inc.

News: Antitrust FederalTradeCommissionNews