Bi-Lo, Delhaize merger includes FTC settlement
Bi-Lo, Delhaize merger includes FTC settlement
Bi-Lo Holdings LLC, the parent of BI-LO and Winn Dixie grocery store chains, has agreed to sell 12 supermarkets in Florida, Georgia and South Carolina to settle Federal Trade Commission charges that its proposed $265 million acquisition of 154 stores from Delhaize America would harm competition in several local markets in those states.
The FTC settlement preserves competition in 11 local markets in the three states. According to the FTC’s complaint, Bi-Lo’s proposed acquisition of the Delhaize stores would likely harm consumers through higher prices, diminished quality and reduced service levels in: Arcadia, Dunnellon, Lake Placid, Madison and Wauchula, FL; Bainbridge, Statesboro, Sylvania, Vidalia and Waynesboro, GA; and Batesburg, SC.
The proposed order settling the commission’s charges requires the merged Bi-Lo/Delhaize to sell 12 stores to Rowes IGA Supermarkets, HAC Inc., W. Lee Flowers & Co. Inc. and Food Giant. The buyers will provide each store employee the opportunity to interview for continued employment.
Under the terms of the purchase agreement, Bi-Lo will acquire the Delhaize stores on a rolling basis, through eight separate deal closings over a 10-week period. Each supermarket divestiture must be completed within 10 days of the respective Bi-Lo/Delhaize closing date.
“We have been preparing for the integration of the Sweetbay, Harveys and Reid’s banners and store associates for many months and are delighted to now move forward and welcome them to the Bi-Lo Holdings family,” R. Randall Onstead, president and chief executive officer of Bi-Lo Holdings, said in a company press release.
“We would like to thank the associates of Sweetbay, Harveys, and Reid´s for their outstanding accomplishments,” Delhaize Group CEO Frans Muller added in the release. “As we complete the transition process, we share our deepest appreciation for their many contributions and service to our customers during their tenure with our company."
Bi-Lo Holdings and Delhaize Group anticipate that the acquisition of the Sweetbay, Harvey’s and Reid’s supermarkets will begin on March 22, 2014 and be complete on May 31, 2014, subject to the satisfaction of remaining closing conditions.
