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Beta chain of stores and Lucky Stores. The long-term benefits
being sought were a greater market share in the California
grocery market, greater operating efficiencies in the combined
operations of the two chains, and the adoption of some of the
management/operating policies of Lucky Stores such as Lucky
Stores’ “everyday low pricing” policy.
On June 9, 1988, ABAC was merged with and into Lucky Stores,
pursuant to short-form merger provisions of the Delaware General
Corporation Law. As a result of the short-form merger, ABAC
disappeared and Lucky Stores became a wholly owned subsidiary of
Alpha Beta. The total consideration paid by American Stores in
the tender offer and merger exceeded $2.5 billion. For purposes
of State law, the merger was final and irrevocable. After its
acquisition of Lucky Stores, American Stores complied with the
requirements of the hold separate agreement and did not integrate
the operations of Lucky Stores with the operations of Alpha Beta.
State of California’s Actions
In April 1988, American Stores provided the State of
California with the filings it had made with the FTC pursuant to
section 7 of the Clayton Act. Through that filing, American
Stores gave formal notice to the State of California of its
intentions to acquire all of the Lucky Stores stock and to merge
ABAC into Lucky Stores.
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