A&P-Pathmark Merger

Dan Rubinfeld, Glenn Mitchell and a Compass Lexecon team in Los Angeles provided economic analysis for Great Atlantic & Pacific Tea Company, owners of the A&P supermarket chain, in its acquisition of Pathmark, a competing supermarket chain. The A&P and Pathmarkchains had substantial geographic overlap in New York and New Jersey, which raised concerns that a large number of stores would have to be divested in order to win approval for the acquisition from the Federal Trade Commission. Although A&P was prepared to sell some stores, the value of the acquisition would have been severely diminished if a large number of stores had to be divested. Working with other consultants to outside counsel, the Compass Lexecon team provided economic analysis of relevant geographic markets and competition from non-traditional supermarkets to demonstrate that the acquisition would not lessen competition in most areas where both A&P and Pathmark stores operated. The FTC eventually agreed, allowing the acquisition to proceed with only a small number of divestitures. A&P was represented by Michael Keeley of Axinn, Veltrop & Harkrider LLP. Pathmark was represented by Bruce Prager of Latham & Watkins LLP.