The FTC approves Amazon - Whole Foods deal

The Federal Trade Commission (FTC) announced yesterday that it has approved Amazon's proposed acquisition of Whole Foods. The announcement comes one day after Whole Foods shareholders voted to approve the $13.7 billion deal.

Amazon plans to close the deal later this year.

The FTC investigated the proposed merger to determine whether it would substantially lesson competition under Section 7 of the Clayton Act, or whether it would constitute an unfair method of competition under Section 5 of the FTC Act. According to the FTC's Bureau of Competition, the agency has decided not to pursue the matter further.

Fred's to buy 865 stores from Walgreen's and Rite Aid

Walgreen's and Rite Aid announced earlier this week that they have agreed to sell 865 stores to Fred's for $950 million in order to alleviate any antitrust concerns related to their pending merger. Kroger had been rumored as the leading candidate to purchase the stores.

Currently Fred's has 581 stores, most of which are in the Southeast. Although the locations of the 856 stores won't be revealed until the Federal Trade Commission approves the merger between Walgreen's and Rite Aid, the two companies said the stores to be sold would be located in the South, as well as the East and West coasts. If the deal goes through, Fred's would become the third largest drugstore chain in the U.S.

Ahold-Delhaize trading as one entity, selling off stores to avoid antitrust concerns

Ahold-Delhaize began trading as a combined entity on Monday, July 25, a few days after the Federal Trade Commission issued a consent order allowing for the completion of the merger, subject to the sale of 81 stores due to antitrust concerns.

According to the company, agreements have been made to sell all 81 stores, plus an additional five stores that were included as part of negotiations with buyers in order to reach a package deal. Buyers include Weis Markets (38 Food Lion stores in Delaware, Maryland and Virginia), Supervalu (22 Food Lion stores in Maryland, Pennsylvania, Virginia and West Virginia), and Publix (10 Martin's stores in Richmond, Virginia), among others.

The FTC said the agreement is subject to public comment until August 22, after which the commission will decide whether to make the proposed consent order final.

Dollar General may be out of the bidding for Family Dollar

It was reported earlier this week that analysts believe Dollar General may be dropping its bid for Family Dollar. The reason cited is the Federal Trade Commission's requirement for up to 4,000 store divestitures as a result of a deal between the two companies. A deal between Family Dollar and Dollar Tree would require only about 310 store closures.

According to Family Dollar Chairman and CEO Howard Levine, "The Family Dollar board of directors continues to be of the unanimous view that the current Dollar General proposal is not reasonably likely to be completed on the terms proposed."

Given that Dollar General hasn't increased its store divestiture commitment or its purchase price, one analyst concludes that they are effectively bowing out of the process.

 

Giant conversion of 15 Genuardi's stores to start this week

The 15 Genuardi's stores sold to Giant (and approved by the Federal Trade Commission) will all be converted by the end of July. Here's the schedule:

Phase 1 - stores to close June 28 and re-open July 8
West Chester
Huntingdon Valley
Jamison
Kennett Square
North Wales

Phase 2 - stores to close July 5 and re-open July 15
Wynnewood
Spring House
King of Prussia
Springfield
Roslyn

Phase 3 - stores to close July 12 and re-open July 22
Flourtown
Maple Glen
Langhorne
Chalfont
St. Davids

McCaffrey's to acquire Genuardi's in Newtown, PA

On Monday I referenced a Food Trade News story that said the Newtown, PA Genuardi's will be acquired by an independent operator rather than by Giant, as previously planned. Yesterday it was announced that the independent operator is actually McCaffrey's Market, which operates stores in nearby Lower Makefield, PA as well as East Windsor and Princeton, NJ.

Giant, which announced in January that it was planning to acquire 16 Genuardi's stores, was forced to give up the Newtown location by the Federal Trade Commission, due to its nearby store in Middletown Township.

According to McCaffrey's, the store will retain Genuardi's 103 employees and hire an additional 40-50 workers. In addition, the store will be remodeled over a four-to-five month period to transform it into a typical McCaffrey's market.

Weis Markets to close on 3 Genuardi's stores next week

I've written before about Giant's plan to take over 16 Genuardi's stores (The Genuardi's list - sold, closing and still for sale...) and Weis Markets' acquisition of three Genuardi's locations (Weis to buy three PA Genuardi's stores), but not much has been said about when all these changes will take place.

One of the first actual dates I've seen (thanks to the May issue of Food Trade News) is June 11, when Weis Markets plans to close on the Conshohocken, Doylestown and Norristown stores. According to the report, the refurbished units should reopen within a week.

In the last couple months I have also heard that the Federal Trade Commission won't allow Giant to open all 16 of the stores it originally planned to acquire from Genuardi's. And last week I read in the same Food Trade News issue referenced above that Giant will get 15 stores, with the Newtown, PA location going to an independent operator.