UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
KONINKLIJKE AHOLD NV, a corporation;
GIANT FOOD INC., a corporation; and
THE 1224 CORPORATION, a corporation.
File No. 981-0254
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission ("Commission") having initiated an investigation
of the proposed acquisition by Koninklijke Ahold nv ("Ahold") of all of the
voting securities of Giant Food Inc. ("Giant") held by The 1224 Corporation
("1224"), and it now appearing that Ahold, Giant, and 1224, hereinafter
sometimes referred to as "Proposed Respondents," are willing to enter into an
agreement containing a consent order ("Agreement") to divest certain assets and
to cease and desist from certain acts, and providing for other relief:
IT IS HEREBY AGREED by and among Proposed Respondents, by their duly
authorized officers and attorneys, and counsel for the Commission that:
- 1. Proposed Respondent Ahold is a corporation organized, existing, and doing business
under and by virtue of the laws of The Netherlands, with its office and principal place of
business located at Albert Heijnweg 1, 1507 EH Zaandam, The Netherlands.
-
- 2. Proposed Respondent Giant is a corporation organized, existing, and doing business
under and by virtue of the laws of the State of Delaware, with its office and principal
place of business located at 6300 Sheriff Road, Landover, Maryland 20785.
-
- 3. Proposed Respondent 1224 is a corporation organized, existing, and doing business
under and by virtue of the laws of the State of Delaware, with its office and principal
place of business located at 6300 Sheriff Road, Landover, Maryland 20785.
-
- 4. Proposed Respondents admit all the jurisdictional facts set forth in the draft of
complaint here attached.
-
- 5. Proposed Respondents waive:
-
- a. any further procedural steps;
-
- b. the requirement that the Commission's decision contain a statement of findings of
fact and conclusions of law;
-
- c. all rights to seek judicial review or otherwise to challenge or contest the validity
of the Order entered pursuant to this Agreement; and
-
- d. any claim under the Equal Access to Justice Act.
-
- 6. This Agreement shall not become part of the public record of the proceeding unless
and until it is accepted by the Commission. If this Agreement is accepted by the
Commission it, together with the draft of complaint contemplated thereby, will be placed
on the public record for a period of sixty (60) days and information in respect thereto
publicly released. The Commission thereafter may either withdraw its acceptance of this
Agreement and so notify the Proposed Respondents, in which event it will take such action
as it may consider appropriate, or issue and serve its complaint (in such form as the
circumstances may require) and decision, in disposition of the proceeding.
-
- 7. This Agreement is for settlement purposes only and does not constitute an admission
by Proposed Respondents that the law has been violated as alleged in the draft of
complaint here attached, or that the facts as alleged in the draft complaint, other than
jurisdictional facts, are true.
-
- 8. This Agreement contemplates that, if it is accepted by the Commission, and if such
acceptance is not subsequently withdrawn by the Commission pursuant to the provisions of
Section 2.34 of the Commission's Rules, the Commission may, without further notice to the
Proposed Respondents, (1) issue its complaint corresponding in form and substance with the
draft of complaint here attached and its decision containing the following Order to divest
and to cease and desist in disposition of the proceeding, and (2) make information public
with respect thereto. When so entered, the Order shall have the same force and effect and
may be altered, modified, or set aside in the same manner and within the same time
provided by statute for other orders. The Order shall become final upon service. Delivery
by the United States Postal Service of the complaint and decision containing the agreed-to
Order to Proposed Respondent Ahold's counsel Robert D. Paul and J. Mark Gidley, and
delivery by the United States Postal Service of the complaint and decision containing the
agreed-to Order to Proposed Respondent Giant's address and Proposed Respondent 1224's
address as stated in this Agreement, shall constitute service. Proposed Respondents waive
any right they may have to any other manner of service. The complaint may be used in
construing the terms of the Order, and no agreement, understanding, representation, or
interpretation not contained in the Order or the Agreement may be used to vary or
contradict the terms of the Order.
-
- 9. Proposed Respondents have read the proposed complaint and Order contemplated hereby.
Proposed Respondents understand that once the Order has been issued, they will be required
to file one or more compliance reports showing that they have fully complied with the
Order. Proposed Respondents further understand that they may be liable for civil penalties
in the amount provided by law for each violation of the Order after it becomes final. By
signing this Agreement, Proposed Respondents represent that they can accomplish the full
relief contemplated by this Agreement. Proposed Respondents agree to be bound by the terms
of the proposed order pending its final approval by the Commission. Proposed Respondents
agree to comply with the proposed order from the date they sign the Agreement. Proposed
Respondents agree that if they divest the Assets To Be Divested pursuant to Paragraphs
II.A., II.B., II.C., II.D., and II.E. of the Order prior to the time the Order becomes
final, they will include and enforce a provision in the Fleming Agreement, the Frederick
County Foods Agreement, the Richfood Agreement, the Safeway Agreement, and the Supervalu
Agreement requiring the transaction(s) to be rescinded, and the Assets To Be Divested
returned to the Proposed Respondents, should the Commission not make the Order final or
should the Commission notify Proposed Respondents that Fleming, Frederick County Foods,
Richfood, Safeway, or Supervalu is not an acceptable acquirer or that the Fleming
Agreement, the Frederick County Foods Agreement, the Richfood Agreement, the Safeway
Agreement, or the Supervalu Agreement is not an acceptable manner of divestiture.
-
- 10. Within thirty (30) days of the date on which they sign this Agreement, Proposed
Respondents shall submit an initial report, pursuant to Section 2.33 of the Commission's
Rules, setting forth in detail the manner in which they are complying with the terms of
the Asset Maintenance Agreement signed by the Proposed Respondents on September 18, 1998
(attached to this Order and made a part hereof as Appendix I), and the manner in which
they will comply with Paragraph II of the Order when and if entered. Such report will not
become part of the public record unless and until the Commission accepts the Agreement for
public comment.
ORDER
I.
IT IS ORDERED that, as used in this Order, the following definitions
shall apply:
- A. "Ahold" means Koninklijke Ahold nv, its directors, officers, employees,
agents, representatives, predecessors, successors, and assigns; its subsidiaries,
divisions, groups and affiliates controlled by Ahold, and the respective directors,
officers, employees, agents, representatives, successors, and assigns of each. Ahold,
after consummation of the Acquisition, includes Giant.
-
- B. "Giant" means Giant Food Inc., its directors, officers, employees, agents,
representatives, predecessors, successors, and assigns; its subsidiaries, divisions,
groups and affiliates controlled by Giant, and the respective directors, officers,
employees, agents, representatives, successors, and assigns of each. The class AC voting
stock, which elects five of the nine directors of Giant, is owned by 1224.
-
- C. "1224" means The 1224 Corporation, its directors, officers, employees,
agents, representatives, predecessors, successors, and assigns; its subsidiaries,
divisions, groups and affiliates controlled by 1224, and the respective directors,
officers, employees, agents, representatives, successors, and assigns of each. 1224 owns
the class AC voting stock, which elects five of the nine directors of Giant.
-
- D. "Respondents" means Ahold, Giant, and 1224 individually and collectively.
-
- E. "Commission" means the Federal Trade Commission.
-
- F. "Acquisition" means Ahold's proposed acquisition of the outstanding voting
securities of and merger with Giant pursuant to the Stock Purchase Agreement dated May 19,
1998.
-
- G. "Assets To Be Divested" means the Supermarkets identified in Schedule A,
Schedule B, Schedule C, Schedule D, and Schedule E of this Order and all assets, leases,
properties, permits (to the extent transferable), customer lists, businesses and goodwill,
tangible and intangible, related to or utilized in the Supermarket business operated at
those locations, but shall not include those assets consisting of or pertaining to any of
the Respondents' trade marks, trade dress, service marks, or trade names.
-
- H. "Supermarket" means a full-line retail grocery store that carries a wide
variety of food and grocery items in particular product categories, including bread and
dairy products; refrigerated and frozen food and beverage products; fresh and prepared
meats and poultry; produce, including fresh fruits and vegetables; shelf-stable food and
beverage products, including canned and other types of packaged products; staple
foodstuffs, which may include salt, sugar, flour, sauces, spices, coffee, and tea; and
other grocery products, including nonfood items such as soaps, detergents, paper goods,
other household products, and health and beauty aids.
-
- I. "Fleming" means Fleming Companies, Inc., a corporation organized, existing
and doing business under and by virtue of the laws of the State of Oklahoma, with its
principal place of business located at 6301 Waterford Boulevard, Oklahoma City, Oklahoma
73126.
-
- J. "Fleming Agreement" means the Purchase Agreement between Fleming and Ahold
executed on September 12, 1998, and all subsequent amendments thereto, for the divestiture
by Respondents to Fleming of the Schedule A Assets To Be Divested.
-
- K. "Frederick County Foods" means Frederick County Foods LLC, a limited
liability corporation organized, existing and doing business under and by virtue of the
laws of the State of Maryland, with its principal place of business located at 835 West
Hillcrest Road, Hagerstown, Maryland 21742.
-
- L. "Frederick County Foods Agreement" means the Purchase Agreement between
Frederick County Foods and Ahold executed on September 11, 1998, and all subsequent
amendments thereto, for the divestiture by Respondents to Frederick County Foods of the
Schedule B Assets To Be Divested.
-
- M. "Richfood" means Richfood Holdings, Inc., a corporation organized, existing
and doing business under and by virtue of the laws of the State of Virginia, with its
principal place of business located at 4860 Cox Road, Suite 300, Glen Allen, Virginia
23060.
-
- N. "Food-A-Rama" means Food-A-Rama, Inc., a corporation organized, existing
and doing business under and by virtue of the laws of the State of Virginia, with its
principal place of business located at 5483 Baltimore National Pike, Baltimore, Maryland
21229. Food-A-Rama is a wholly-owned subsidiary of Richfood. Food-A-Rama operates
supermarkets under the Metro Food Markets trade name.
-
- O. "Richfood Agreement" means the Purchase Agreement between Food-A-Rama and
Ahold executed on September 14, 1998, and all subsequent amendments thereto, for the
divestiture by Respondents to Richfood of the Schedule C Assets To Be Divested.
-
- P. "Safeway" means Safeway Inc., a corporation organized, existing and doing
business under and by virtue of the laws of the State of Delaware, with its principal
place of business located at 5918 Stoneridge Mall Road, Pleasanton, California 94588.
-
- Q. "Safeway Agreement" means the Purchase Agreement between Safeway and Giant
executed on September 12, 1998, and all subsequent amendments thereto, for the divestiture
by Respondents to Safeway of the Schedule D Assets To Be Divested.
-
- R. "Supervalu" means Supervalu Inc., a corporation organized, existing and
doing business under and by virtue of the laws of the State of Delaware, with its
principal place of business located at 11840 Valley View Road, Eden Prairie, Minnesota
55344; and Supervalu Holdings, Inc. a corporation organized, existing and doing business
under and by virtue of the laws of the State of Missouri, with its principal place of
business located at 11840 Valley View Road, Eden Prairie, Minnesota 55344. Supervalu
Holdings, Inc. is a wholly-owned subsidiary of Supervalu Inc.
-
- S. "Supervalu Agreement" means the Purchase Agreement between Supervalu and
Giant executed on September 14, 1998, and all subsequent amendments thereto, for the
divestiture by Respondents to Supervalu of the Schedule E Assets To Be Divested.
-
- T. "Acquirer(s)" means Fleming, Frederick County Foods, Richfood, Safeway,
Supervalu and/or any other entity or entities approved by the Commission to acquire the
Assets To Be Divested pursuant to this Order, individually and collectively.
-
- U. "Third Party Consents" means all consents from any other person, including
all landlords, that are necessary to effect the complete transfer to the Acquirer(s) of
the Assets To Be Divested.
II.
IT IS FURTHER ORDERED that:
A. Respondents shall divest, absolutely and in good faith, the Schedule A Assets To Be
Divested to Fleming, in accordance with the Fleming Agreement dated September 12, 1998
(which agreement shall not be construed to vary or contradict the terms of this Order or
the Asset Maintenance Agreement), no later than
- 1. twenty (20) days after the date on which the Acquisition is consummated, or
-
- 2. four (4) months after the date on which Respondents sign the Agreement Containing
Consent Order,
whichever is earlier.
Provided, however, that if Respondents have divested the Schedule A Assets to
Fleming pursuant to the Fleming Agreement prior to the date the Order becomes final, and
if, at the time the Commission determines to make the Order final, the Commission notifies
Respondents that Fleming is not an acceptable acquirer or that the Fleming Agreement is
not an acceptable manner of divestiture, then Respondents shall immediately rescind the
transaction with Fleming and shall divest the Schedule A Assets within three (3) months of
the date the Order becomes final. Respondents shall divest the Schedule A Assets only to
an acquirer that receives the prior approval of the Commission and only in a manner that
receives the prior approval of the Commission.
Respondents shall obtain all required Third Party Consents prior to the closing of the
Fleming Agreement or any other agreement pursuant to which the Schedule A Assets To Be
Divested are divested to an Acquirer.
B. Respondents shall divest, absolutely and in good faith, the Schedule B Assets To Be
Divested to Frederick County Foods, in accordance with the Frederick County Foods
Agreement dated September 11, 1998 (which agreement shall not be construed to vary or
contradict the terms of this Order or the Asset Maintenance Agreement; provided, however,
that pursuant to the Frederick County Foods Agreement, Respondents may assign their
leasehold interests in the supermarkets to Supervalu, which shall sublease the
Supermarkets to Frederick County Foods), no later than
- 1. twenty (20) days after the date on which the Acquisition is consummated, or
-
- 2. four (4) months after the date on which Respondents sign the Agreement Containing
Consent Order,
whichever is earlier.
Provided, however, that if Respondents have divested the Schedule B Assets to
Frederick County Foods pursuant to the Frederick County Foods Agreement prior to the date
the Order becomes final, and if, at the time the Commission determines to make the Order
final, the Commission notifies Respondents that Frederick County Foods is not an
acceptable acquirer or that the Frederick County Foods Agreement is not an acceptable
manner of divestiture, then Respondents shall immediately rescind the transaction with
Frederick County Foods and shall divest the Schedule B Assets within three (3) months of
the date the Order becomes final. Respondents shall divest the Schedule B Assets only to
an acquirer that receives the prior approval of the Commission and only in a manner that
receives the prior approval of the Commission.
Respondents shall obtain all required Third Party Consents prior to the closing of the
Frederick County Foods Agreement or any other agreement pursuant to which the Schedule B
Assets To Be Divested are divested to an Acquirer.
C. Respondents shall divest, absolutely and in good faith, the Schedule C Assets
To Be Divested to Richfood, in accordance with the Richfood Agreement dated September
14, 1998 (which agreement shall not be construed to vary or contradict the terms of this
Order or the Asset Maintenance Agreement), no later than
- 1. twenty (20) days after the date on which the Acquisition is consummated, or
-
- 2. four (4) months after the date on which Respondents sign the Agreement Containing
Consent Order,
whichever is earlier.
Provided, however, that if Respondents have divested the Schedule C Assets to
Richfood pursuant to the Richfood Agreement prior to the date the Order becomes final, and
if, at the time the Commission determines to make the Order final, the Commission notifies
Respondents that Richfood is not an acceptable acquirer or that the Richfood Agreement is
not an acceptable manner of divestiture, then Respondents shall immediately rescind the
transaction with Richfood and shall divest the Schedule C Assets within three (3) months
of the date the Order becomes final. Respondents shall divest the Schedule C Assets only
to an acquirer that receives the prior approval of the Commission and only in a manner
that receives the prior approval of the Commission.
Respondents shall obtain all required Third Party Consents prior to the closing of the
Richfood Agreement or any other agreement pursuant to which the Schedule C Assets To Be
Divested are divested to an Acquirer.
D. Respondents shall divest, absolutely and in good faith, the Schedule D Assets To Be
Divested to Safeway, in accordance with the Safeway Agreement dated September 12, 1998
(which agreement shall not be construed to vary or contradict the terms of this Order or
the Asset Maintenance Agreement), no later than
- 1. twenty (20) days after the date on which the Acquisition is consummated, or
-
- 2. four (4) months after the date on which Respondents sign the Agreement Containing
Consent Order,
whichever is earlier.
Provided, however, that if Respondents have divested the Schedule D Assets to
Safeway pursuant to the Safeway Agreement prior to the date the Order becomes final, and
if, at the time the Commission determines to make the Order final, the Commission notifies
Respondents that Safeway is not an acceptable acquirer or that the Safeway Agreement is
not an acceptable manner of divestiture, then Respondents shall immediately rescind the
transaction with Safeway and shall divest the Schedule D Assets within three (3) months of
the date the Order becomes final. Respondents shall divest the Schedule D Assets only to
an acquirer that receives the prior approval of the Commission and only in a manner that
receives the prior approval of the Commission.
Respondents shall obtain all required Third Party Consents prior to the closing of the
Safeway Agreement or any other agreement pursuant to which the Schedule D Assets To Be
Divested are divested to an Acquirer.
E. Respondents shall divest, absolutely and in good faith, the Schedule E Assets
To Be Divested to Supervalu, in accordance with the Supervalu Agreement dated September
14, 1998 (which agreement shall not be construed to vary or contradict the terms of this
Order or the Asset Maintenance Agreement), no later than
- 1. twenty (20) days after the date on which the Acquisition is consummated, or
-
- 2. four (4) months after the date on which Respondents sign the Agreement Containing
Consent Order,
whichever is earlier.
Provided, however, that if Respondents have divested the Schedule E Assets to
Supervalu pursuant to the Supervalu Agreement prior to the date the Order becomes final,
and if, at the time the Commission determines to make the Order final, the Commission
notifies Respondents that Supervalu is not an acceptable acquirer or that the Supervalu
Agreement is not an acceptable manner of divestiture, then Respondents shall immediately
rescind the transaction with Supervalu and shall divest the Schedule E Assets within three
(3) months of the date the Order becomes final. Respondents shall divest the Schedule E
Assets only to an acquirer that receives the prior approval of the Commission and only in
a manner that receives the prior approval of the Commission.
Respondents shall obtain all required Third Party Consents prior to the closing of the
Supervalu Agreement or any other agreement pursuant to which the Schedule E Assets To Be
Divested are divested to an Acquirer.
F. The purpose of the divestitures is to ensure the continuation of the Assets To Be
Divested as ongoing viable enterprises engaged in the Supermarket business and to remedy
the lessening of competition resulting from the Acquisition alleged in the Commission's
complaint.
III.
IT IS FURTHER ORDERED that:
A. If Respondents have not divested, absolutely and in good faith and with the
Commission's prior approval, the Assets To Be Divested within the time required by
Paragraph II of this Order, the Commission may appoint a trustee to divest the Assets To
Be Divested. In the event that the Commission or the Attorney General brings an action
pursuant to Section 5(l) of the Federal Trade Commission Act, 15 U.S.C.
§ 45(l), or any other statute enforced by the Commission, Respondents shall
consent to the appointment of a trustee in such action. Neither the appointment of a
trustee nor a decision not to appoint a trustee under this Paragraph shall preclude the
Commission or the Attorney General from seeking civil penalties or any other relief
available to it, including a court-appointed trustee, pursuant to Section 5(l)
of the Federal Trade Commission Act, or any other statute enforced by the Commission, for
any failure by the Respondents to comply with this Order.
B. If a trustee is appointed by the Commission or a court pursuant to Paragraph III.A.
of this Order, Respondents shall consent to the following terms and conditions regarding
the trustee's powers, duties, authority, and responsibilities:
- 1. The Commission shall select the trustee, subject to the consent of Respondents, which
consent shall not be unreasonably withheld. The trustee shall be a person with experience
and expertise in acquisitions and divestitures. If Respondents have not opposed, in
writing, including the reasons for opposing, the selection of any proposed trustee within
ten (10) days after receipt of written notice by the staff of the
Commission to Respondents of the identity of any proposed trustee, Respondents shall be
deemed to have consented to the selection of the proposed trustee.
-
- 2. Subject to the prior approval of the Commission, the trustee shall have the exclusive
power and authority to divest the Assets To Be Divested.
-
- 3. Within ten (10) days after appointment of the trustee, Respondents shall execute a
trust agreement that, subject to the prior approval of the Commission and, in the case of
a court-appointed trustee, of the court, transfers to the trustee all rights and powers
necessary to permit the trustee to effect each divestiture required by this Order.
-
- 4. The trustee shall have twelve (12) months from the date the Commission or court
approves the trust agreement described in Paragraph III.B.3. to accomplish the
divestitures, which shall be subject to the prior approval of the Commission. If, however,
at the end of the twelve-month period, the trustee has submitted a plan of divestiture or
believes that divestiture can be achieved within a reasonable time, the divestiture period
may be extended by the Commission, or, in the case of a court-appointed trustee, by the
court; provided, however, the Commission may extend the period for no more than two (2)
additional periods.
-
- 5. The trustee shall have full and complete access to the personnel, books, records, and
facilities related to the Assets To Be Divested or to any other relevant information, as
the trustee may request. Respondents shall develop such financial or other information as
such trustee may reasonably request and shall cooperate with the trustee. Respondents
shall take no action to interfere with or impede the trustee's accomplishment of the
divestitures. Any delays in divestiture caused by Respondents shall extend the time for
divestiture under this Paragraph in an amount equal to the delay, as determined by the
Commission or, for a court-appointed trustee, by the court.
-
- 6. The trustee shall use his or her best efforts to negotiate the most favorable price
and terms available in each contract that is submitted to the Commission, subject to
Respondents' absolute and unconditional obligation to divest expeditiously at no minimum
price. The divestitures shall be made in the manner and to the acquirer or acquirers as
set out in Paragraph II of this Order; provided, however, if the trustee receives bona
fide offers for an asset to be divested from more than one acquiring entity, and if the
Commission determines to approve more than one such acquiring entity, the trustee shall
divest such asset to the acquiring entity or entities selected by Ahold from among those
approved by the Commission.
-
- 7. The trustee shall serve, without bond or other security, at the cost and expense of
Respondents, on such reasonable and customary terms and conditions as the Commission or a
court may set. The trustee shall have the authority to employ, at the cost and expense of
Respondents, such consultants, accountants, attorneys, investment bankers, business
brokers, appraisers, and other representatives and assistants as are necessary to carry
out the trustee's duties and responsibilities. The trustee shall account for all monies
derived from the divestitures and all expenses incurred. After approval by the Commission
and, in the case of a court-appointed trustee, by the court, of the account of the
trustee, including fees for his or her services, all remaining monies shall be paid at the
direction of Ahold, and the trustee's power shall be terminated. The trustee's
compensation shall be based at least in significant part on a commission arrangement
contingent on the trustee's divesting the Assets To Be Divested.
-
- 8. Respondents shall indemnify the trustee and hold the trustee harmless against any
losses, claims, damages, liabilities, or expenses arising out of, or in connection with,
the performance of the trustee's duties, including all reasonable fees of counsel and
other expenses incurred in connection with the preparation for or defense of any claim,
whether or not resulting in any liability, except to the extent that such liabilities,
losses, damages, claims, or expenses result from misfeasance, gross negligence, willful or
wanton acts, or bad faith by the trustee.
-
- 9. If the trustee ceases to act or fails to act diligently, a substitute trustee shall
be appointed in the same manner as provided in Paragraph III.A. of this Order.
-
- 10. The Commission or, in the case of a court-appointed trustee, the court, may on its
own initiative or at the request of the trustee issue such additional orders or directions
as may be necessary or appropriate to accomplish each divestiture required by this Order.
-
- 11. The trustee may also divest such additional ancillary assets and businesses and
effect such arrangements as are necessary to assure the marketability and the viability
and competitiveness of the Assets To Be Divested. In the event that any Acquirer is unable
to take or keep possession of any Asset To Be Divested, the trustee may divest all other
assets of the Respondents in that relevant section of the country, as alleged in Paragraph
16 of the complaint, to remedy the anticompetitive effects alleged in the complaint.
-
- 12. The trustee shall have no obligation or authority to operate or maintain the Assets
To Be Divested.
-
- 13. The trustee shall report in writing to Respondents and the Commission every sixty
(60) days concerning the trustee's efforts to accomplish each divestiture required by this
Order.
IV.
IT IS FURTHER ORDERED that:
A. Pending divestiture of the Assets To Be Divested pursuant to this Order, Respondents
shall take such actions as are necessary to maintain the viability, competitiveness, and
marketability of the Assets To Be Divested, and to prevent the destruction, removal,
wasting, deterioration, or impairment of any of Assets To Be Divested except for ordinary
wear and tear.
B. Respondents shall comply with all the terms of the Asset Maintenance Agreement
attached to this Order and made a part hereof as Appendix I. The Asset Maintenance
Agreement shall continue in effect until such time as all Assets To Be Divested have been
divested as required by this Order.
V.
IT IS FURTHER ORDERED that, for a period of ten (10) years from the
date this Order becomes final, Ahold shall not, directly or indirectly, through
subsidiaries, partnerships, or otherwise, without providing advance written notification
to the Commission:
- A. Acquire any ownership or leasehold interest in any facility that has operated as a
Supermarket within six (6) months prior to the date of such proposed acquisition in
Carroll, Frederick, or Harford counties in Maryland, or Bucks or Montgomery counties in
Pennsylvania.
-
- B. Acquire any stock, share capital, equity, or other interest in any entity that owns
any interest in or operates any Supermarket or owned any interest in or operated any
Supermarket within six (6) months prior to such proposed acquisition in Carroll,
Frederick, or Harford counties in Maryland, or Bucks or Montgomery counties in
Pennsylvania.
Provided, however, that advance written notification shall not apply to the
construction of new facilities by Ahold or the acquisition of or leasing of a facility
that has not operated as a Supermarket within six (6) months prior to Ahold's offer to
purchase or lease.
Said notification shall be given on the Notification and Report Form set forth in the
Appendix to Part 803 of Title 16 of the Code of Federal Regulations as amended
(hereinafter referred to as "the Notification"), and shall be prepared and
transmitted in accordance with the requirements of that part, except that no filing fee
will be required for any such notification, notification shall be filed with the Secretary
of the Commission, notification need not be made to the United States Department of
Justice, and notification is required only of Ahold and not of any other party to the
transaction. Ahold shall provide the Notification to the Commission at least thirty days
prior to consummating any such transaction (hereinafter referred to as the "first
waiting period"). If, within the first waiting period, representatives of the
Commission make a written request for additional information or documentary material
(within the meaning of 16 C.F.R. § 803.20), Ahold shall not consummate the
transaction until twenty days after substantially complying with such request. Early
termination of the waiting periods in this Paragraph may be requested and, where
appropriate, granted by letter from the Bureau of Competition. Provided, however, that
prior notification shall not be required by this Paragraph for a transaction for which
notification is required to be made, and has been made, pursuant to Section 7A of the
Clayton Act, 15 U.S.C. § 18a.
VI.
IT IS FURTHER ORDERED that, for a period of ten (10) years commencing
on the date this Order becomes final:
- A. Ahold shall neither enter into nor enforce any agreement that restricts the ability
of any person (as defined in Section 1(a) of the Clayton Act, 15 U.S.C. § 12(a))
that acquires any Supermarket, any leasehold interest in any Supermarket, or any interest
in any retail location used as a Supermarket on or after January 1, 1998, in Carroll,
Frederick, or Harford counties in Maryland, or Bucks or Montgomery counties in
Pennsylvania, to operate a Supermarket at that site if such Supermarket was formerly owned
or operated by Ahold.
-
- B. Ahold shall not remove any fixtures or equipment from a property owned or leased by
Ahold in Carroll, Frederick, or Harford counties in Maryland, or Bucks or Montgomery
counties in Pennsylvania, that is no longer in operation as a Supermarket, except (1)
prior to and as part of a sale, sublease, assignment, or change in occupancy of such
Supermarket; or (2) to relocate such fixtures or equipment in the ordinary course of
business to any other Supermarket owned or operated by Ahold.
VII.
IT IS FURTHER ORDERED that:
A. Within thirty (30) days after the date Respondents signed the Agreement Containing
Consent Order and every thirty (30) days thereafter until Respondents have fully complied
with the provisions of Paragraphs II, III, and IV of this Order, Respondents shall submit
to the Commission verified written reports setting forth in detail the manner and form in
which they intend to comply, are complying, and have complied with Paragraphs II, III, and
IV of this Order. Respondents shall include in their compliance reports, among other
things that are required from time to time, a full description of the efforts being made
to comply with Paragraphs II, III, and IV of the Order, including a description of all
substantive contacts or negotiations for divestitures and the identity of all parties
contacted. Respondents shall include in their compliance reports copies of all written
communications to and from such parties, all internal memoranda, and all reports and
recommendations concerning divestiture.
B. One (1) year from the date this Order becomes final, annually for the next nine (9)
years on the anniversary of the date this Order becomes final, and at other times as the
Commission may require, Ahold shall file verified written reports with the Commission
setting forth in detail the manner and form in which it has complied and is complying with
this Order.
VIII.
IT IS FURTHER ORDERED that Respondents shall notify the Commission at
least thirty (30) days prior to any proposed change in the corporate Respondents, such as
dissolution, assignment, sale resulting in the emergence of a successor corporation, or
the creation or dissolution of subsidiaries or any other change in Respondents that may
affect compliance obligations arising out of the Order.
IX.
IT IS FURTHER ORDERED that, for the purpose of determining or securing
compliance with this Order, upon written request with five (5) days' notice to
Respondents, Respondents shall permit any duly authorized representative of the
Commission:
- A. Access, during office hours and in the presence of counsel, to inspect and copy all
books, ledgers, accounts, correspondence, memoranda and other records and documents in the
possession or under the control of Respondents relating to any matters contained in this
Order; and
-
- B. Without restraint or interference from Respondents, to interview Respondents or
officers, directors, or employees of Respondents in the presence of counsel.
X.
IT IS FURTHER ORDERED that, upon consummation of the Acquisition, the
obligations of Respondent 1224 under this Order shall terminate.
Signed this _____ day of September, 1998
KONINKLIJKE AHOLD NV, a corporation
By:
____________________________________
Paul P.J. Butzelaar
Senior Vice President and General Counsel
____________________________________
Robert D. Paul, Esq.
White & Case LLP
Counsel for Koninklijke Ahold nv
___________________________________
J. Mark Gidley, Esq.
White & Case LLP
Counsel for Koninklijke Ahold nv
GIANT FOOD INC., a corporation
By:
____________________________________
Pete L. Manos
Chairman of the Board, President, and Chief Executive Officer
____________________________________
Glenn Mitchell, Esq.
Stein, Mitchell & Mezines
Counsel for Giant Food Inc.
THE 1224 CORPORATION, a corporation
By:
____________________________________
Pete L. Manos
President
____________________________________
Glenn Mitchell, Esq.
Stein, Mitchell & Mezines
Counsel for The 1224 Corporation
FEDERAL TRADE COMMISSION
By:
____________________________________
James A. Fishkin
Attorney
Bureau of Competition
APPROVED:
____________________________________
Richard Liebeskind
Deputy Assistant Director
Bureau of Competition
____________________________________
Phillip L. Broyles
Assistant Director
Bureau of Competition
____________________________________
Richard G. Parker
Senior Deputy Director
Bureau of Competition
____________________________________
William J. Baer
Director
Bureau of Competition
Schedule A
(Supermarket Divested to Fleming)
The following supermarket located in Harford County, Maryland:
1. Ahold store no. 114 operating under the "Martin's Food Market" trade name,
which is located at 550 West McPhail Road, Bel Air, Maryland 21014.
Schedule B
(Supermarkets Divested to Frederick County Foods)
The following supermarkets located in Frederick County, Maryland:
1. Ahold store no. 40 operating under the "Martin's Food Market" trade name,
which is located at 66 Waverly Drive in the Frederick Towne Mall Shopping Center,
Frederick, Maryland 21701; and
2. Ahold store no. 96 operating under the "Martin's Food Market" trade name,
which is located at 1305 West 7th Street in the Frederick Shopping Center, Frederick,
Maryland 21701.
Schedule C
(Supermarket Divested to Richfood)
The following supermarket located in Carroll County, Maryland:
1. Ahold store no. 36 operating under the "Martin's Food Market" trade name,
which is located at 551 Jermor Lane, Westminster, Maryland 21157.
Schedule D
(Supermarket Divested to Safeway)
The following supermarket located in Carroll County, Maryland:
1. Giant store no. 238 operating under the "Giant" trade name, which is
located at 1313 Londontowne Boulevard in the Londontowne Square Shopping Center,
Eldersburg, Maryland 21784.
Schedule E
(Supermarkets Divested to Supervalu)
The following supermarkets located in Bucks County, Pennsylvania:
1. Giant store no. 242 operating under the "Super G" trade name, which is
located at 1601 Big Oak Road in the Oxford Oaks Shopping Center, Lower Makefield Township,
Pennsylvania 19067; and
2. Giant store no. 249 operating under the "Super G" trade name, which is
located at 942 West Street Road in the Towne Square Shopping Center, Warminster,
Pennsylvania 18974.
The following supermarkets located in Montgomery County, Pennsylvania:
1. Giant store no. 237 operating under the "Super G" trade name, which is
located at 1591 Bethlehem Pike in the Hilltown Crossings Shopping Center, Hilltown
Township, Pennsylvania 19440; and
2. Giant store no. 243 operating under the "Super G" trade name, which is
located at 2775 West Main Street in the Park-Ridge Shopping Center, Lower Providence
Township, Pennsylvania 19403; and
3. Giant store no. 250 operating under the "Super G" trade name, which is
located at 55 Germantown Pike in the Norriton Square Shopping Center, East Norriton
Township, Pennsylvania 19401. |