Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks comments on Service Corporation International’s application to sell certain California assets, (Mar 13, 2014)
Organizations Mentioned:Service Corporation International | Stewart Enterprises, Inc.
By Linda O’Brien, J.D., LL.M.
The FTC is seeking public comments on an application by Service Corporation International (SCI), the nation’s largest provider of funeral and cemetery services, to sell certain funeral and cremation assets under the FTC’s December 2013 proposed order settling charges that its $1.4 billion acquisition of Stewart Enterprises, Inc. would likely substantially lessen competition (In re Matter of Service Corporation International, Docket No. C-4423, File No. 131-0163).
In its application, SCI petitioned the FTC to approve the divestiture to Angeleno Mortuaries, Inc. of the following two businesses located in Lancaster, California: Halley-Olsen-Murphy Funerals & Cremations and Antelope Valley Cremation Service. SCI also requests FTC approval of a facilities agreement between Angeleno and S.E. Funeral Homes of California. According to SCI’s application, Angeleno has extensive experience in the funeral services industry, owns no competing assets in the Lancaster area and has the financial capability to be a strong and effective competitor in the market.
In its complaint, the FTC alleged that SCI’s proposed acquisition of Stewart was likely to substantially reduce the competition for funeral and cemetery services in local markets for funeral and cemetery services. The proposed order to settle the FTC charges required the combined SCI/Stewart company to divest 53 funeral homes and 38 cemeteries in 59 communities throughout the United States. The required divestitures to ensure consumer in the affected communities would continue to have access to competitive funeral and cemetery services.
Public comments may be submitted until April 11, 2014. Written comments should be submitted to the FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can also be submitted electronically.
Companies: Service Corporation International; Stewart Enterprises, Inc.
News: Antitrust FederalTradeCommissionNews