Antitrust Law Daily Wrap Up, ANTITRUST NEWS—Justice Department Agrees to Allow Standard Parking Additional Time to Complete Required Divestitures, (Jan 14, 2013)

By E. Darius Sturmer, J.D.

The Department of Justice filed a report in the federal district court in Washington, D.C. on January 11, agreeing to allow Standard Parking Corporation, KCPC Holdings, Inc. and Central Parking Corporation up to 90 days’ additional time to complete the divestitures of 57 parking facilities around the United States. The facilities were among 107 that the companies agreed to divest under a proposed U.S. consent decree resolving the Justice Department’s charges that Standard’s planned $345 million acquisition of Central would violate federal antitrust law by lessening competition in the market for off-street parking facilities in central business districts of major cities around the country.

The proposed consent decree, which became final upon its entry by the court on January 3, stipulated that all of the divestiture assets, located in 29 cities in 21 states, had to be sold within five days—January 8, 2013. The extensions provide that 39 of the remaining facilities must be sold by February 7, an additional 17 by March 9, and one final facility by April 8.

In granting the extensions, the government noted the “substantial progress that the defendants have already made, with nearly half of the required divestitures completed.” The government further took into account the defendants’ representations of how quickly they believed they could complete the divestitures.

Prior to the transaction, Standard and Central were the two largest parking management companies in the United States.

News: Antitrust AntitrustDivisionNews