Tag: Retail

The Commission sought a federal court temporary restraining order and preliminary injunction, and issued an administrative complaint, against Whole Food Market, Inc.’s proposed acquisition of Wild Oats Markets, Inc. According to the complaint, the approximately $670 million deal raised competition problems in 21 local markets where Whole Foods and Wild Oats both operated stores and were each other’s closest competitors among premium national and organic supermarkets. The district court granted the TRO, but subsequently denied the preliminary injunction, concluding that the merger’s likely effect would not be substantially to reduce competition in violation of Section 7 of the Clayton Act. The Commission appealed the district court’s ruling on grounds that the lower court failed to apply the proper legal standard that governs preliminary injunction applications by the Commission in Section 7 cases. The appellate court remanded the case to the district court for further proceedings to determine if the proposed $670 million deal raised competition problems in numerous local markets where Whole Foods and Wild Oats both operated premium natural and organic supermarkets. In a settlement on March 6, 2009, Whole Foods agreed to sell the name brand of Wild Oats, along with 32 of the company’s stores.

There is a related administrative proceeding.

In October of 2008, the Commission issued a consent order to settle charges that Golf Galaxy, a subsidiary of Dick’s Sporting Goods Inc., entered into an illegal agreement with Golf Canada to allocate the market for golf merchandise in the United States and Canada. The agreement barred Golf Canada from opening stores in the United States in exchange for privileged business information from Golf Galaxy, including blueprints, merchandising plans, and sales reports. The Commission’s consent order prevents Golf Galaxy from further dividing or allocating the market, and rendered its 2004 non-compete agreement with Golf Canada unenforceable.

The Commission charged that Agrium, Inc.’s $2.65 billion proposed acquisition of UAP Holding Corporation would substantially lessen competition in the market for the retail sale of bulk fertilizer and, in some cases, related services by farm stores, in several local markets in Michigan and Maryland. The Commission’s order requires the divestiture of seven farm stores, five UAP stores in Michigan, and two Agrium locations on the eastern shore of Maryland.

The Commission intervened in the proposed $1.3 billion acquisition of Pathmark Stores by Great Atlantic & Pacific Tea (A&P), alleging the transaction would have reduced competition among grocery stores in the highly concentrated markets of Staten Island and Shirley, Long Island, New York. A&P operates stores under the A&P, A&P Super Foodmart, Food Basics, Food Emporium, Super Fresh, and Waldbaum’s banners. The Commission’s consent order required A&P to divest five supermarkets in Staten Island, and one supermarket in Shirley.

Ahold would be permitted to acquire Bruno's Supermarkets, Inc. under terms of a consent order, but would be required to divest two BI-LO supermarkets in Georgia -one Milledgeville, and one in Sandersville. The Commission's complaint charged that the acquisition as originally proposed would reduce competition in the retail sale of food and grocery items in supermarkets in the area and would eliminate direct competition between supermarkets owned and controlled by Ahold and those owned or controlled by Bruno's.

Penn National Gaming, Inc. agreed to sell a casino in Baton Rouge, Louisiana to settle charges that its acquisition of Argosy Gaming Company would create a monopoly for casino services in that area.  Penn National agreed to sell Argosy's casino to Columbia Sussex Corporation within four months of the order becoming final.