Deal cleared for Tengelmann/ Pathmark merger

WASHINGTON, D.C. The Federal Trade Commission has given the green light for Great Atlantic & Pacific Tea’s acquisition of Pathmark Stores on the condition that the companies agreed to sell six grocery stores in New York.

The stores involved are: four A&P Waldbaum's hypermarkets and one Pathmark in Staten Island, as well as one Waldbaum's hypermarket in Shirley, N.Y.

“A&P and Pathmark are supermarket competitors in the highly concentrated areas of Staten Island and Shirley, Long Island, New York,” said Jeffrey Schmidt, director of the FTC’s bureau of competition. “Absent the relief provided by the Commission’s consent order, consumers in these areas likely would face higher prices and lower levels of service when shopping for their weekly groceries.”

The stores are to be sold by Jan. 10, 2008.

According to the FTC, when a consent order is issued on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of $11,000.