1. News
July 25, 2016

Pennsylvania and five US states reach settlement for retail store divestures

Pennsylvania attorney general Kathleen Kane has announced about the settlement required for major food retailers to divest stores in central Pennsylvania, US.

Pennsylvania attorney general Kathleen Kane has announced about the settlement required for major food retailers to divest stores in central Pennsylvania, US.

Pennsylvania and five other states have reached a settlement with Koninklijke Ahold, the owner of Giant-Carlisle and Martin's supermarkets, and Food Lion owner Delhaize Group, for the divestiture of 76 supermarkets across the US, which enables retailers to proceed with a proposed $28bn merger.

"The sale of these stores will not only preserve the competition necessary to keep prices low, but it will also provide an excellent alternative for consumers."

The settlement with these two food retailers follows a review conducted by Pennsylvania attorney general's office, other state attorneys general and the US Federal Trade Commission.

Kane said: "The sale of these stores will not only preserve the competition necessary to keep prices low, but it will also provide an excellent alternative for consumers."

The retailers include parent companies of various supermarkets present in the US and Europe. Four out of the 76 stores are located in central Pennsylvania.

The attorney general’s office worked to ensure the divestitures to two businesses.

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Family-owned grocer Saubel’s will be acquiring the Food Lion store in York.

Independently owned grocery store chain Supervalu will be acquiring two Food Lion stores in Chambersburg and one in Waynesboro. 

Last June, Ahold announced about its agreement to merge with Delhaize.

The settlement announced was filed in the form of a lawsuit and proposed consent judgment in the US District Court for the District of Columbia.

Five other states that will be joining the settlement comprise Delaware, Maryland, Massachusetts, Virginia and West Virginia.