[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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
[[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\
---------------------------------------------------------------------------
\4\ See Exhibit A.
---------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------
Merger HHI
Area number City State result HHI (pre) (post) Delta Divested store(s)
----------------------------------------------------------------------------------------------------------------
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