[Federal Register Volume 80, Number 22 (Tuesday, February 3, 2015)]
[Notices]
[Pages 5753-5758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01971]


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FEDERAL TRADE COMMISSION

[File No. 141 0108]


Cerberus Institutional Partners V, L.P., AB Acquisition LLC, and 
Safeway Inc.; Analysis of Proposed Consent Order To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair methods of competition. 
The attached Analysis to Aid Public Comment describes both the 
allegations in the draft complaint and the terms of the consent order--
embodied in the consent agreement--that would settle these allegations.

DATES: Comments must be received on or before February 26, 2015.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/albertsonssafewayconsent online or on 
paper, by following the instructions in the Request for Comment part of 
the SUPPLEMENTARY INFORMATION section below. Write ``Albertson's and 
Safeway Inc.,--Consent Agreement; File No. 141 0108'' on your comment 
and file your comment online at https://ftcpublic.commentworks.com/ftc/albertsonssafewayconsent by following the instructions on the web-based 
form. If you prefer to file your comment on paper, write ``Albertson's 
and Safeway Inc.,--Consent Agreement; File No. 141 0108'' on your 
comment and on the envelope, and mail your comment to the following 
address: Federal Trade Commission, Office of the Secretary, 600 
Pennsylvania Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, 
or deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Constitution Center, 400 7th 
Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Alexis Gilman, Bureau of Competition, 
(202-326-2579) or Dan Ducore, Bureau of Competition, (202-326-2526), 
600 Pennsylvania Avenue NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement, and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for January 27, 2015), on the World Wide Web, 
at http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before February 26, 
2015. Write ``Albertson's and Safeway Inc.,--Consent Agreement; File 
No. 141 0108'' on your comment. Your comment--including your name and 
your state--will be placed on the public record of this proceeding, 
including, to the extent practicable, on the public Commission Web 
site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of 
discretion, the Commission tries to remove individuals' home contact 
information from comments before placing them on the Commission Web 
site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/albertsonssafewayconsent by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that Web site.
    If you file your comment on paper, write ``Albertson's and Safeway 
Inc.,--Consent Agreement; File No. 141 0108'' on your comment and on 
the envelope, and mail your comment to the following address: Federal 
Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., 
Suite CC-5610 (Annex D), Washington, DC 20580, or deliver your comment 
to the following address: Federal Trade Commission, Office of the 
Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 
5610 (Annex D), Washington, DC 20024. If possible, submit your paper 
comment to the Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The

[[Page 5754]]

FTC Act and other laws that the Commission administers permit the 
collection of public comments to consider and use in this proceeding as 
appropriate. The Commission will consider all timely and responsive 
public comments that it receives on or before February 26, 2015. You 
can find more information, including routine uses permitted by the 
Privacy Act, in the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Agreement Containing Consent Order To Aid Public Comment

I. Introduction and Background

    The Federal Trade Commission (``Commission'') has accepted for 
public comment, subject to final approval, an Agreement Containing 
Consent Order (``Consent Order'') from Cerberus Institutional Partners 
V, L.P. (``Cerberus''), its wholly owned subsidiary, AB Acquisition, 
LLC (``Albertson's''), and Safeway Inc. (``Safeway'') (collectively, 
the ``Respondents''). On March 6, 2014, Albertson's and Safeway entered 
into a merger agreement whereby Albertson's agreed to purchase 100% of 
the equity of Safeway for approximately $9.2 billion (the 
``Acquisition''). The purpose of the proposed Consent Order is to 
remedy the anticompetitive effects that otherwise would result from the 
Acquisition. Under the terms of the proposed Consent Order, Respondents 
are required to divest 168 stores and related assets in 130 local 
supermarket geographic markets (collectively, the ``relevant markets'') 
in eight states to four Commission-approved buyers. The divestitures 
must be completed within a time-period ranging from 60 to 150 days 
following the date of the Acquisition. Finally, the Commission and 
Respondents have agreed to an Order to Maintain Assets that requires 
Respondents to operate and maintain each divestiture store in the 
normal course of business, through the date the store is ultimately 
divested to a buyer.
    The proposed Consent Order has been placed on the public record for 
30 days to solicit comments from interested persons. Comments received 
during this period will become part of the public record. After 30 
days, the Commission again will review the proposed Consent Order and 
any comments received, and decide whether it should withdraw the 
Consent Order, modify the Consent Order, or make it final.
    The Commission's Complaint alleges that the Acquisition, if 
consummated, would violate Section 7 of the Clayton Act, as amended, 15 
U.S.C. 18, and Section 5 of the Federal Trade Commission Act, as 
amended, 15 U.S.C. 45, by removing an actual, direct, and substantial 
supermarket competitor in the 130 local supermarket geographic markets. 
The elimination of this competition would result in significant 
competitive harm; specifically the Acquisition will allow the combined 
entity to increase prices above competitive levels, unilaterally or by 
coordinating with remaining market participants. Similarly, absent a 
remedy, there is significant risk that the merged firm may decrease 
quality and service aspects of their stores below competitive levels. 
The proposed Consent Order would remedy the alleged violations by 
requiring divestitures to replace competition that otherwise would be 
lost in the relevant markets because of the Acquisition.

The Respondents

    AB Acquisition, LLC, owned by New York-based private equity firm 
Cerberus Capital Management, L.P., is the parent company of Albertson's 
LLC and New Albertson's, Inc. (together ``Albertson's''). As of March 
19, 2014, Albertson's LLC operated 630 supermarkets, primarily under 
its Albertson's banner. Presently, Albertson's stores are located in 
Arkansas, Arizona, California, Colorado, Florida, Idaho, Louisiana, 
Montana, Nevada, New Mexico, North Dakota, Oregon, Texas, Utah, 
Washington, and Wyoming. Albertson's LLC also operates supermarkets in 
Texas under the Market Street, Amigos, and United Supermarkets banners. 
United Supermarkets is a traditional grocery store, while Market Street 
offers specialty and ``whole-health'' products, and Amigos has an 
international and Hispanic format. As of March 19, 2014, New 
Albertson's, Inc., owned and operated 445 supermarkets under the Jewel-
Osco, ACME, Shaw's, and Star Market banners, dispersed throughout Iowa, 
Illinois, Indiana, Delaware, Maryland, Pennsylvania, New Jersey, 
Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont.
    As of December 2013, Safeway owned 1,332 supermarkets, making it 
one of the largest food and drug retailers in the United States. Stores 
are operated under the Safeway banner in Alaska, Arizona, California, 
Colorado, District of Columbia, Delaware, Hawaii, Idaho, Maryland, 
Montana, Nebraska, Nevada, New Mexico, Oregon, South Dakota, Virginia, 
Washington, and Wyoming. Safeway also operates stores under the 
following banners: Pavilions, Pak 'n Save, and The Market in 
California; Randall's and Tom Thumb in Texas; Genuardi's in 
Pennsylvania; Vons in California and Nevada; and Carr's in Alaska.

Retail Sale of Food and Other Grocery Products In Supermarkets

    The Acquisition presents substantial antitrust concerns for the 
retail sale of food and other grocery products in supermarkets. 
Supermarkets are defined as traditional full-line retail grocery stores 
that sell, on a large-scale basis, food and non-food products that 
customers regularly consume at home--including, but not limited to, 
fresh meat, dairy products, frozen foods, beverages, bakery goods, dry 
groceries, detergents, and health and beauty products. This broad set 
of products and services provides a ``one-stop shopping'' experience 
for consumers by enabling them to shop in a single store for all of 
their food and grocery needs. The ability to offer consumers one-stop 
shopping is a critical differentiating factor between supermarkets and 
other food retailers.
    The relevant product market includes supermarkets within 
``hypermarkets,'' such as Wal-Mart Supercenters. Hypermarkets also sell 
an array of products that would not be found in traditional 
supermarkets. However, hypermarkets, like conventional supermarkets, 
contain bakeries, delis, dairy, produce, fresh meat, and sufficient 
product offerings to enable customers to purchase all of their weekly 
grocery requirements in a single shopping visit.
    Other types of retailers--such as hard discounters, limited 
assortment stores, natural and organic markets, ethnic specialty 
stores, and club stores--also sell food and grocery items. These types 
of retailers, however, are not in the relevant product market because 
they offer a more limited range of products and services than 
supermarkets and because they appeal to a distinct customer type. 
Shoppers typically do not view these other food and grocery retailers 
as adequate substitutes for supermarkets.\2\ Further, although these 
other types of retailers offer some competition, supermarkets do not 
view them as providing as significant or close competition as 
traditional supermarkets. Thus, consistent with prior Commission 
precedent, these other types of retailers are excluded from the 
relevant product market.\3\
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    \2\ Supermarket shoppers would be unlikely to switch to one of 
these other types of retailers in response to a small but 
significant increase in price or ``SSNIP'' by a hypothetical 
supermarket monopolist. See U.S. DOJ and FTC Horizontal Merger 
Guidelines Sec.  4.1.1 (2010).
    \3\ See, e.g., Bi-Lo Holdings, LLC/Delhaize America, LLC, Docket 
C-4440 (February 25, 2014); AB Acquisition, LLC, Docket C-4424 
(December 23, 2013); Konkinlijke Ahold N.V./Safeway Inc., Docket C-
4367 (August 17, 2012); Shaw's/Star Markets, Docket C-3934 (June 28, 
1999); Kroger/Fred Meyer, Docket C-3917 (January 10, 2000); 
Albertson's/American Stores, Docket C-3986 (June 22, 1999); Ahold/
Giant, Docket C-3861 (April 5, 1999); Albertson's/Buttrey, Docket C-
3838 (December 8, 1998); Jitney-Jungle Stores of America, Inc., 
Docket C-3784 (January 30, 1998). But see Wal-Mart/Supermercados 
Amigo, Docket C-4066 (November 21, 2002) (the Commission's complaint 
alleged that in Puerto Rico, club stores should be included in a 
product market that included supermarkets because club stores in 
Puerto Rico enabled consumers to purchase substantially all of their 
weekly food and grocery requirements in a single shopping visit).

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[[Page 5755]]

    The relevant geographic markets in which to analyze the effects of 
the Acquisition are areas that range from a two- to ten-mile radius 
around each of the Respondents' supermarkets, depending on factors such 
as population density, traffic patterns, and unique characteristics of 
each market. Where the Respondents' supermarkets are located in rural, 
isolated areas, the relevant geographic areas are larger than areas 
where the Respondents' supermarkets are located in more densely 
populated suburban areas. A hypothetical monopolist of the retail sale 
of food and grocery products in supermarkets in each relevant area 
could profitably impose a small but significant non-transitory increase 
in price.
    The 130 geographic markets in which to analyze the effects of the 
Acquisition are local areas in and around: (1) Anthem, Arizona; (2) 
Carefree, Arizona; (3) Flagstaff, Arizona; (4) Lake Havasu, Arizona; 
(5) Prescott, Arizona; (6) Prescott Valley, Arizona; (7) Scottsdale, 
Arizona; (8) Tucson (Eastern), Arizona; (9) Tucson (Southwest), 
Arizona; (10) Alpine, California; (11) Arroyo Grande/Grover Beach, 
California; (12) Atascadero, California; (13) Bakersfield, California; 
(14) Burbank, California; (15) Calabasas, California; (16) Camarillo, 
California; (17) Carlsbad (North), California; (18) Carlsbad (South), 
California; (19) Carpinteria, California; (20) Cheviot Hills/Culver 
City, California; (21) Chino Hills, California; (22) Coronado, 
California; (23) Diamond Bar, California; (24) El Cajon, California; 
(25) Hermosa Beach, California; (26) Imperial Beach, California; (27) 
La Jolla, California; (28) La Mesa, California; (29) Ladera Ranch, 
California; (30) Laguna Beach, California; (31) Laguna Niguel, 
California; (32) Lakewood, California; (33) Lemon Grove, California; 
(34) Lomita, California; (35) Lompoc, California; (36) Mira Mesa 
(North), California; (37) Mira Mesa (South), California; (38) Mission 
Viejo/Laguna Hills, California; (39) Mission Viejo (North), California; 
(40) Morro Bay, California; (41) National City, California; (42) 
Newbury, California; (43) Newport, California; (44) Oxnard, California; 
(45) Palm Desert/Rancho Mirage, California; (46) Palmdale, California; 
(47) Paso Robles, California; (48) Poway, California; (49) Rancho 
Cucamonga/Upland, California; (50) Rancho Santa Margarita, California; 
(51) San Diego (Clairemont), California; (52) San Diego (Hillcrest/
University Heights), California; (53) San Diego (Tierrasanta), 
California; (54) San Luis Obispo, California; (55) San Marcos, 
California; (56) San Pedro, California; (57) Santa Barbara, California; 
(58) Santa Barbara/Goleta, California; (59) Santa Clarita, California; 
(60) Santa Monica, California; (61) Santee, California; (62) Simi 
Valley, California; (63) Solana Beach, California; (64) Thousand Oaks, 
California; (65) Tujunga, California; (66) Tustin (Central), 
California; (67) Tustin/Irvine, California; (68) Ventura, California; 
(69) Westlake Village, California; (70) Yorba Linda, California; (71) 
Butte, Montana; (72) Deer Lodge, Montana; (73) Missoula, Montana; (74) 
Boulder City, Nevada; (75) Henderson, (East), Nevada; (76) Henderson 
(Southwest), Nevada; (77) Summerlin, Nevada; (78) Ashland, Oregon; (79) 
Baker County, Oregon; (80) Bend, Oregon; (81) Eugene, Oregon; (82) 
Grants Pass, Oregon; (83) Happy Valley/Clackamas, Oregon; (84) Keizer, 
Oregon; (85) Klamath Falls, Oregon; (86) Lake Oswego, Oregon; (87) 
Milwaukie, Oregon; (88) Sherwood, Oregon; (89) Springfield, Oregon; 
(90) Tigard, Oregon; (91) West Linn, Oregon; (92) Colleyville, Texas; 
(93) Dallas (Far North), Texas; (94) Dallas (Farmers/Branch/North 
Dallas), Texas; (95) Dallas (University Park/Highland Park), Texas; 
(96) Dallas (University Park/Northeast), Texas; (97) McKinney, Texas; 
(98) Plano, Texas; (99) Roanoke, Texas; (100) Rowlett, Texas; (101) 
Bremerton, Washington; (102) Burien, Washington; (103) Everett, 
Washington; (104) Federal Way, Washington; (105) Gig Harbor, 
Washington; (106) Lake Forest Park, Washington; (107) Lake Stevens, 
Washington; (108) Lakewood, Washington; (109) Liberty Lake, Washington; 
(110) Milton, Washington; (111) Monroe, Washington; (112) Oak Harbor, 
Washington; (113) Olympia (East), Washington; (114) Port Angeles, 
Washington; (115) Port Orchard, Washington; (116) Puyallup, Washington; 
(117) Renton (East Hill-Meridian), Washington; (118) Renton (New 
Castle), Washington; (119) Sammamish, Washington; (120) Shoreline, 
Washington; (121) Silverdale, Washington; (122) Snohomish, Washington; 
(123) Tacoma (Eastside), Washington; (124) Tacoma (Spanaway), 
Washington; (125) Walla Walla, Washington; (126) Wenatchee, Washington; 
(127) Woodinville, Washington; (128) Casper, Wyoming; (129) Laramie, 
Wyoming; and (130) Sheridan, Wyoming.
    Each of the relevant geographic markets is highly concentrated and 
the Acquisition would significantly increase market concentration and 
eliminate substantial direct competition between two significant 
supermarket operators. The post-Acquisition HHI levels in the relevant 
markets vary from 2,562 to 10,000 points, and the HHI deltas vary from 
225 to 5,000 points. Under the 2010 Department of Justice and Federal 
Trade Commission Horizontal Merger Guidelines (``Merger Guidelines''), 
an acquisition that results in an HHI in excess of 2,500 points and 
increases the HHI by more than 200 points is presumed anticompetitive. 
Thus, the presumptions of illegality and anticompetitive effects are 
easily met, and often far exceeded, in the relevant geographic markets 
at issue.
    The relevant markets are also highly concentrated in terms of the 
number of remaining market participants post-Acquisition. Of the 130 
geographic markets, the acquisition will result in a merger-to-monopoly 
in 13 markets and a merger-to-duopoly in 42 markets. In the remaining 
markets, the Acquisition will reduce the number of market participants 
from four to three in 43 markets, five to four in 27 markets, and six 
to five in five markets.\4\
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    \4\ See Exhibit A.
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    The anticompetitive implications of such significant increases in 
market concentration are reinforced by substantial evidence 
demonstrating that Albertson's and Safeway are close and vigorous 
competitors in terms of price, format, service, product offerings, 
promotional activity, and location in each of the relevant geographic 
markets. Absent relief, the Acquisition would eliminate significant 
head-to-head competition between Albertson's and Safeway and would 
increase the ability and incentive of Albertson's to raise prices 
unilaterally post-Acquisition. The Acquisition would also decrease 
incentives to compete on non-price factors, such as service levels, 
convenience, and quality. Lastly, the high levels of concentration also 
increase the likelihood of competitive harm through coordinated 
interaction in markets in which Albertson's will face only one other 
traditional supermarket competitor post-Acquisition. Given the 
transparency of pricing and promotional

[[Page 5756]]

practices among supermarkets and that supermarkets ``price check'' 
competitors in the ordinary course of business, the Acquisition 
increases the possibility that Albertson's and its remaining competitor 
could simply follow each other's price increases post-Acquisition.
    New entry or expansion in the relevant markets is unlikely to deter 
or counteract the anticompetitive effects of the Acquisition. Moreover, 
even if a prospective entrant existed, the entrant must secure a viable 
location, obtain the necessary permits and governmental approvals, 
build its retail establishment or renovate an existing building, and 
open to customers before it could begin operating and serve as a 
relevant competitive constraint. As a result, new entry sufficient to 
achieve a significant market impact and act as a competitive constraint 
is unlikely to occur in a timely manner.

The Proposed Consent Order

    The proposed remedy, which requires the divestiture of Albertson's 
or Safeway supermarkets in the relevant markets to four Commission-
approved up-front buyers (the ``proposed buyers'') will restore fully 
the competition that otherwise would be eliminated in these markets as 
a result of the Acquisition. Specifically, Respondents have agreed to 
divest:
     146 stores and related assets in Arizona, California, 
Nevada, Oregon, and Washington to Haggen, Inc. (``Haggen'');
     Two stores in Washington to Supervalu, Inc. 
(``Supervalu'');
     12 stores and related assets in Texas to Associated 
Wholesale Grocers (``AWG''); and
     Eight stores and related assets in Montana and Wyoming to 
Associated Food Stores (``Associated'').
    The proposed buyers appear to be highly suitable purchasers and are 
well positioned to enter the relevant geographic markets and prevent 
the increase in market concentration and likely competitive harm that 
otherwise would have resulted from the Acquisition. The supermarkets 
currently owned by any of the proposed buyers are all located outside 
the relevant geographic markets in which they are purchasing divested 
stores.
    Haggen is a regional supermarket chain with 18 supermarkets in 
Washington and Oregon. Haggen will purchase all but two of the divested 
stores in Washington, because Haggen already operates stores in those 
two geographic markets. Supervalu will purchase the two stores in 
Washington that Haggen is not purchasing. Supervalu is a wholesale 
distributor that also operates 190 corporate-owned supermarkets and 
previously owned these two Washington stores. AWG is a member-owned 
cooperative grocery wholesaler supplying nearly 3,000 supermarkets in 
33 states. Although AWG does not currently own or operate any 
supermarkets, AWG has owned and operated corporate-owned supermarkets 
in the past. Finally, Associated is a member-owned cooperative grocery 
wholesaler that supplies and operates retail supermarkets. Associated's 
members operate approximately 424 grocery stores in ten states, and the 
cooperative, through a subsidiary, owns and operates 43 corporate-owned 
supermarkets located in Utah and Nevada. It is expected that AWG will 
assign its operating rights in the 12 Texas stores it is acquiring to 
RLS Supermarkets, LLC (d/b/a Minyard Food Stores) and that Associated 
will assign its rights in the eight Montana and Wyoming stores it is 
acquiring to Missoula Fresh Market LLC, Ridley's Family Markets, Inc., 
and Stokes Inc.
    The Proposed Consent Order requires Respondents to divest: (a) The 
Arizona, California, Nevada, Oregon, and Washington assets to Haggen 
within 150 days from the date of the Acquisition; (b) the two stores in 
Washington to Supervalu within 100 days of the date of the Acquisition; 
(c) the Texas assets to AWG within 60 days of the date of the 
Acquisition; and (d) the Montana and Wyoming assets to Associated 
within 60 days of the date of the Acquisition. If, at the time before 
the Proposed Consent Order is made final, the Commission determines 
that any of the proposed buyers are not acceptable buyers, Respondents 
must immediately rescind the divestiture(s) and divest the assets to a 
different buyer that receives the Commission's prior approval.
    The proposed Consent Order contains additional provisions designed 
to ensure the adequacy of the proposed relief. For example, Respondents 
have agreed to an Order to Maintain Assets that will be issued at the 
time the Proposed Consent Order is accepted for public comment. The 
Order to Maintain Assets requires Albertson's and Safeway to operate 
and maintain each divestiture store in the normal course of business, 
through the date the store is ultimately divested to a buyer. Since the 
divestiture schedule runs for an extended period of time (potentially 
up to 150 days following the Acquisition date), the Proposed Consent 
Order appoints Richard King as a Monitor to oversee the Respondents' 
compliance with the requirements of the Proposed Consent Order and 
Order to Maintain Assets. Mr. King has the experience and skill-set to 
be an effective Monitor, no identifiable conflicts, and sufficient time 
to dedicate to this matter through its conclusion. Lastly, for a period 
of ten years, Albertson's is required to give the Commission prior 
notice of plans to acquire any interest in a supermarket that has 
operated or is operating in the counties included in the relevant 
markets.
    * * *
    The sole purpose of this Analysis is to facilitate public comment 
on the proposed Consent Order. This Analysis does not constitute an 
official interpretation of the proposed Consent Order, nor does it 
modify its terms in any way.

                                                    Exhibit A
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                                                 Merger                  HHI
Area number           City            State      result    HHI (pre)    (post)     Delta      Divested store(s)
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1..........  Anthem...............         AZ  4 to 3....       2768       3423        655  SFY 1726.
2..........  Carefree.............         AZ  5 to 4....       2298       2976        678  ALB 979.
3..........  Flagstaff............         AZ  5 to 4....       2744       3365        621  ALB 967.
4..........  Lake Havasu..........         AZ  4 to 3....       2609       3401        792  ALB 1027.
5..........  Prescott.............         AZ  4 to 3....       2675       3405        730  ALB 953.
6..........  Prescott Valley......         AZ  4 to 3....       2828       3340        512  ALB 965.
7..........  Scottsdale...........         AZ  3 to 2....       3797       5001       1204  ALB 983.
8..........  Tucson (Eastern).....         AZ  4 to 3....       3341       4130        789  SFY 234 & 2611.
9..........  Tucson (Southwest)...         AZ  5 to 4....       2018       2909        891  ALB 972.
10.........  Alpine...............         CA  3 to 2....       3857       5002       1145  SFY 2333.
11.........  Arroyo Grande/Grover          CA  3 to 2....       3690       6864       3174  ALB 6304.
              Beach.
12.........  Atascadero...........         CA  3 to 2....       3456       6242       2786  ALB 6390.

[[Page 5757]]

 
13.........  Bakersfield..........         CA  6 to 5....       1923       2562        639  ALB 6323, 6325 &
                                                                                             6379.
14.........  Burbank..............         CA  3 to 2....       4199       5011        812  ALB 6315.
15.........  Calabasas............         CA  3 to 2....       3400       5415       2015  SFY 2031.
16.........  Camarillo............         CA  5 to 4....       2950       4215       1265  ALB 6385.
17.........  Carlsbad (North).....         CA  4 to 3....       2977       3888        911  ALB 6701.
18.........  Carlsbad (South).....         CA  5 to 4....       2209       3210       1001  ALB 6720.
19.........  Carpinteria..........         CA  2 to 1....       5012     10,000       4988  SFY 2425.
20.........  Cheviot Hills/Culver          CA  4 to 3....       2394       3914       1520  ALB 6168 & 6169.
              City.
21.........  Chino Hills..........         CA  4 to 3....       3596       4047        451  SFY 2597.
22.........  Coronado Island......         CA  2 to 1....       5025     10,000       4975  ALB 6747.
23.........  Diamond Bar..........         CA  3 to 2....       4466       5231        765  SFY 2062.
24.........  El Cajon.............         CA  4 to 3....       2983       3597        614  ALB 6771.
25.........  Hermosa Beach........         CA  5 to 4....       2752       4371       1619  ALB 6127, 6138, 6153
                                                                                             & 6189.
26.........  Imperial Beach.......         CA  2 to 1....       5869     10,000       4131  ALB 6228.
27.........  La Jolla.............         CA  3 to 2....       5505       7083       1578  ALB 6788.
28.........  La Mesa..............         CA  3 to 2....       3382       5997       2615  SFY 2064 & 2137.
29.........  Ladera Ranch.........         CA  2 to 1....       5081     10,000       4919  SFY 2703.
30.........  Laguna Beach.........         CA  3 to 2....       3335       5799       2464  ALB 6575.
31.........  Laguna Niguel........         CA  4 to 3....       3190       3883        693  SFY 1676.
32.........  Lakewood.............         CA  6 to 5....       2073       2581        508  ALB 6154.
33.........  Lemon Grove..........         CA  3 to 2....       3581       6059       2478  SFY 2365.
34.........  Lomita...............         CA  3 to 2....       3695       5040       1345  ALB 6107.
35.........  Lompoc...............         CA  4 to 3....       2566       3713       1147  ALB 6339.
36.........  Mira Mesa (North)....         CA  5 to 4....       2412       3808       1396  ALB 6742 & 6772.
37.........  Mira Mesa (South)....         CA  2 to 1....       6904     10,000       3096  ALB 6770.
38.........  Mission Viejo/Laguna          CA  4 to 3....       3157       3784        627  ALB 6517.
              Hills.
39.........  Mission Viejo (North)         CA  3 to 2....       3933       5012       1079  SFY 1670.
40.........  Morro Bay............         CA  5 to 4....       2965       4056       1091  SFY 2312.
41.........  National City........         CA  3 to 2....       3748       5013       1265  SFY 2006, 2336 &
                                                                                             3063.
42.........  Newbury Park.........         CA  3 to 2....       3629       5833       2204  SFY 1793.
43.........  Newport Beach........         CA  5 to 4....       3160       3811        651  ALB 6504.
44.........  Oxnard...............         CA  4 to 3....       2939       3375        436  ALB 6217.
45.........  Palm Desert/Rancho            CA  6 to 5....       2196       3094        898  SFY 2383 & 3218.
              Mirage.
46.........  Palmdale.............         CA  4 to 3....       3056       4039        983  ALB 6329.
47.........  Paso Robles..........         CA  4 to 3....       2851       5427       2576  SFY 2317.
48.........  Poway................         CA  4 to 3....       2540       3526        986  ALB 6741 & 6763.
49.........  Rancho Cucamonga/             CA  4 to 3....       3266       4118        852  ALB 6523 & 6589.
              Upland.
50.........  Rancho Santa                  CA  4 to 3....       2628       4300       1672  ALB 6521.
              Margarita.
51.........  San Diego                     CA  3 to 2....       4066       6374       2308  ALB 6781.
              (Clairemont).
52.........  San Diego (Hillcrest/         CA  3 to 2....       4436       6571       2135  ALB 6714 & 6715.
              University Heights).
53.........  San Diego, CA                 CA  2 to 1....       5586     10,000       4414  ALB 6760.
              (Tierrasanta).
54.........  San Luis Obispo......         CA  4 to 3....       2896       5306       2410  ALB 6372 & 6409.
55.........  San Marcos...........         CA  3 to 2....       5991       6282        291  SFY 2174.
56.........  San Pedro............         CA  3 to 2....       3518       6442       2924  ALB 6160 & 6164.
57.........  Santa Barbara........         CA  4 to 3....       2741       3462        721  ALB 6351 & 6352.
58.........  Santa Barbara/Goleta.         CA  3 to 2....       3909       7469       3560  SFY 2048 & 2691.
59.........  Santa Clarita........         CA  4 to 3....       2646       3732       1086  SFY 1669 & 1961.
60.........  Santa Monica.........         CA  4 to 3....       3293       4879       1586  ALB 6162.
61.........  Santee...............         CA  3 to 2....       3477       6133       2656  ALB 6727.
62.........  Simi Valley..........         CA  5 to 4....       3633       7101       3468  ALB 6317 & 6363; SFY
                                                                                             2163.
63.........  Solana Beach.........         CA  3 to 2....       3830       6188       2358  ALB 6702.
64.........  Thousand Oaks........         CA  3 to 2....       4057       6047       1990  ALB 6369.
65.........  Tujunga..............         CA  3 to 2....       3688       3969        281  ALB 6397.
66.........  Tustin (central).....         CA  4 to 3....       3474       4348        874  SFY 2146 & 2324.
67.........  Tustin/Irvine........         CA  4 to 3....       3939       4485        546  SFY 2822.
68.........  Ventura..............         CA  4 to 3....       2732       3550        818  ALB 6318.
69.........  Westlake Village.....         CA  5 to 4....       1955       3563       1608  ALB 6388.
70.........  Yorba Linda..........         CA  4 to 3....       2803       4588       1785  ALB 6510.
71.........  Butte................         MT  3 to 2....       4701       5189        488  ALB 2007.
72.........  Deer Lodge...........         MT  2 to 1....       5000     10,000       5000  SFY 3256.
73.........  Missoula.............         MT  4 to 3....       3107       4063        956  SFY 1573 & 2619.
74.........  Boulder City.........         NV  2 to 1....       5051     10,000       4949  SFY 2391.
75.........  Henderson (East).....         NV  4 to 3....       2705       3356        651  ALB 6014 & 6019.
76.........  Henderson (Southwest)         NV  3 to 2....       3653       5042       1389  ALB 6028.
77.........  Summerlin............         NV  4 to 3....       3107       4367       1260  SFY 1688, 2392 &
                                                                                             2395.
78.........  Ashland..............         OR  2 to 1....       5013     10,000       4987  SFY 4292.
79.........  Baker County.........         OR  2 to 1....       5102     10,000       4898  ALB 261.
80.........  Bend.................         OR  6 to 5....       2632       3824       1192  ALB 587 & 588.
81.........  Eugene...............         OR  5 to 4....       2392       3414       1022  ALB 507 & 568.
82.........  Grants Pass..........         OR  4 to 3....       2769       3537        768  ALB 501 & 537.

[[Page 5758]]

 
83.........  Happy Valley/                 OR  2 to 1....       5006     10,000       4994  ALB 503.
              Clackamas.
84.........  Keizer...............         OR  5 to 4....       2852       3367        515  ALB 562.
85.........  Klamath Falls........         OR  5 to 4....       2511       2917        406  SFY 1766 & 4395.
86.........  Lake Oswego..........         OR  4 to 3....       3176       5604       2428  ALB 521.
87.........  Milwaukie............         OR  3 to 2....       5729       6082        353  ALB 566.
88.........  Sherwood.............         OR  3 to 2....       3989       5028       1039  ALB 579.
89.........  Springfield..........         OR  3 to 2....       4400       5197        797  SFY 311.
90.........  Tigard...............         OR  5 to 4....       2261       2984        723  ALB 559, 565 & 576.
91.........  West Linn............         OR  3 to 2....       3611       6268       2657  ALB 506.
92.........  Colleyville..........         TX  5 to 4....       2686       3465        779  SFY 3555 & 3576.
93.........  Dallas (Far North)...         TX  5 to 4....       2413       2891        478  ALB 4140.
94.........  Dallas (Farmers               TX  4 to 3....       3746       5175       1429  ALB 4182.
              Branch/North Dallas).
95.........  Dallas (University            TX  4 to 3....       2755       4261       1506  ALB 4134 & 4168.
              Park/Highland Park).
96.........  Dallas (University            TX  5 to 4....       2345       3065        720  ALB 4132 & 4297.
              Park/Northeast
              Dallas).
97.........  McKinney.............         TX  5 to 4....       2692       3613        921  SFY 3573.
98.........  Plano................         TX  4 to 3....       3105       3541        436  SFY 2568.
99.........  Roanoke..............         TX  3 to 2....       4680       5351        671  ALB 4149.
100........  Rowlett..............         TX  3 to 2....       3386       5450       2064  ALB 4197.
101........  Bremerton............         WA  4 to 3....       2721       3399        678  ALB 443.
102........  Burien...............         WA  5 to 4....       1979       4489       2510  ALB 411 & 473.
103........  Everett..............         WA  5 to 4....       2301       2586        285  SFY 517.
104........  Federal Way..........         WA  5 to 4....       2312       2709        397  ALB 496.
105........  Gig Harbor...........         WA  3 to 2....       3396       5235       1839  SFY 2949.
106........  Lake Forest Park.....         WA  5 to 4....       3889       4352        463  ALB 425.
107........  Lake Stevens.........         WA  5 to 4....       2646       3455        809  ALB 477.
108........  Lakewood.............         WA  5 to 4....       2333       3170        837  ALB 465.
109........  Liberty Lake.........         WA  3 to 2....       3483       5090       1607  SFY 1741.
110........  Milton...............         WA  3 to 2....       3960       5010       1050  ALB 472.
111........  Monroe...............         WA  4 to 3....       2911       3352        441  ALB 476.
112........  Oak Harbor...........         WA  3 to 2....       4296       6446       2150  SFY 3518.
113........  Olympia (East).......         WA  6 to 5....       2205       2566        361  ALB 415.
114........  Port Angeles.........         WA  3 to 2....       3773       5588       1815  ALB 404.
115........  Port Orchard.........         WA  4 to 3....       2747       3362        615  SFY 1082.
116........  Puyallup.............         WA  3 to 2....       4160       5072        912  ALB 468.
117........  Renton (East Hill-            WA  4 to 3....       3304       3719        415  ALB 470.
              Meridian).
118........  Renton (New Castle)..         WA  4 to 3....       4417       5274        857  SFY 1468.
119........  Sammamish............         WA  2 to 1....       5761     10,000       4239  ALB 403.
120........  Shoreline............         WA  4 to 3....       3792       4017        225  SFY 442.
121........  Silverdale...........         WA  4 to 3....       2845       3516        671  ALB 492.
122........  Snohomish............         WA  2 to 1....       5595     10,000       4405  ALB 401.
123........  Tacoma (Eastside)....         WA  4 to 3....       3260       3727        467  ALB 498.
124........  Tacoma (Spanaway)....         WA  5 to 4....       2707       3360        653  SFY 551.
125........  Walla Walla..........         WA  5 to 4....       2624       3417        793  ALB 225.
126........  Wenatchee............         WA  3 to 2....       3744       5047       1303  ALB 244.
127........  Woodinville..........         WA  3 to 2....       3568       5192       1624  ALB 459.
128........  Casper...............         WY  4 to 3....       3816       4353        537  SFY 433 & 2468.
129........  Laramie..............         WY  3 to 2....       3793       5000       1207  ALB 2063.
130........  Sheridan.............         WY  3 to 2....       4802       5421        619  SFY 2664.
----------------------------------------------------------------------------------------------------------------


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2015-01971 Filed 2-2-15; 8:45 am]
BILLING CODE 6750-01-P