California Ex Rel. Van De Kamp v. American Stores Co.

ORDER RE PRELIMINARY INJUNCTION; PRELIMINARY INJUNCTION

The Court, having received and considered Plaintiff State of California’s Application for a Preliminary Injunction and the papers filed in support thereof and in opposition thereto, HEREBY GRANTS Plaintiff’s application.

I. BACKGROUND

Plaintiff, State of California, through its Attorney General, John K. Van de Kamp, (“State”) brought this action to enjoin the merger of the assets and businesses of Lucky Stores, Inc. (“Lucky”) and American Stores Company, Alpha Beta Acquisition Corporation, and their respective subsidiaries (“Alpha Beta”).

The parties to this proposed merger are the first and fourth largest supermarket chains in California and two of the ten largest grocery chains in the United States. Both Alpha Beta and Lucky are principally engaged in the retail sale of food and related products for off-premises consumption. In California, Alpha Beta operates 252 “Alpha Beta” and “Skaggs Alpha Beta” retail supermarkets. Lucky operates 340 “Lucky Stores” and “Lucky Food Basket” retail supermarkets. Memorandum In Opposition to Motion For Preliminary Injunction at 4 (“Opp. to Inj”). The proposed Lucky/Alpha Beta…