Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks public comments on Service Corporation International’s application to sell funeral assets in Alabama, (Jun 6, 2014)

By Linda O’Brien, J.D., LL.M.

The FTC announced today that the agency 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 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 its application, SCI has petitioned the FTC to approve the divestiture of Mobile Memorial Gardens Funeral Home in Mobile, Alabama, to Legacy Funeral Holdings of Alabama, LLC, a wholly owned subsidiary of Legacy Funeral Holdings, Inc.

According to SCI’s application, Legacy Holdings is qualified and capable to own and operate the divestiture business as a strong and effective competitor and has the financial ability to complete the transaction promptly following Commission approval.

In its complaint, (In re Matter of Service Corporation International, Docket No. C-4423, File No. 131-0163), 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 July 8, 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.; Legacy Funeral Holdings, Inc.

News: Antitrust FederalTradeCommissionNews