Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks comments on Service Corporation International’s application to sell funeral assets in Kansas, Missouri, and Texas, (Mar 20, 2014)

By Linda O’Brien, J.D., LL.M.

The FTC is seeking public comments on a recent 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 consent order settling charges that its $1.4 billion acquisition of Stewart Enterprises, Inc. would likely substantially lessen competition. In total, the proposed settlement requires the combined SCI/Stewart to divest 53 funeral homes and 38 cemeteries to ensure that competition is maintain in 59 communities throughout the United States (In re Matter of Service Corp. International, FTC Dkt. No. C-4423, FTC File No. 131-0163).

In its application, SCI has petitioned the FTC to approve the divestiture of the following assets in Kansas, Missouri, and Texas to Signature Funeral and Cemetery Investments LLC and/or its affiliates: (1) Mount Moriah Terrace Park Funeral Home & Cemetery in Kansas City, Missouri; (2) Overland Park Chapel in Overland Park, Kansas; (3) Johnson County Funeral Chapel & Memorial Gardens in Overland Park, Kansas; (4) Lincoln Funeral Home & Cemetery in Dallas, Texas; (5) Lincoln Memorial Park Cemetery in Dallas, Texas; and (6) Emerald City Funeral Home & Cemetery in Kennedale, Texas.

According to SCI’s application, Signature will be a strong and effective competitor in each local market, and has the expertise to successfully operate the businesses it plans to acquire.

In its complaint, the FTC charged that SCI’s proposed acquisition of Stewart, if consummated, was likely to substantially reduce the competition for funeral and cemetery services in local markets identified by the agency, in violation of Section 7 of the Clayton Act and Section 5 of the FTC Act. The complaint alleged that each of the local markets for funeral and cemetery services was highly concentrated and that the merger as proposed would eliminate direct competition between the companies.

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 21, 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 Corp. International; Stewart Enterprises, Inc.; Signature Funeral and Cemetery Investments LLC

News: Antitrust FederalTradeCommissionNews