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Analyst: Bi-Lo/Food Lion Merger Could Test FTC

A combined Bi-Lo and Food Lion would exceed 35% market share in nine markets, and create a company with No. 1 market share in 14 of the 17 markets where they both do business, according to an analysis from BMO Capital Markets.

Jon Springer, Executive Editor

October 9, 2009

1 Min Read
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JON SPRINGER

NEW YORK — A combined Bi-Lo and Food Lion would exceed 35% market share in nine markets, and create a company with No. 1 market share in 14 of the 17 markets where they both do business, according to an analysis from BMO Capital Markets here.

“The overlap is substantial in our view,” the analyst, Karen Short, said in a research report released yesterday, “so all eyes will be on the [Federal Trade Commission] to gauge the agency’s current view on market-share dominance.”

Food Lion, through parent Delhaize Group, revealed a plan to acquire its smaller rival Bi-Lo out of bankruptcy court this week.

According to Short, the combined company would be strongest in the markets of Chattanooga, Tenn. (43.1%); Statesville-Mooresville, N.C. (40.8%); Myrtle Beach, S.C. (39.5%); Florence, S.C. (37.9%); and Columbia, S.C. (37.4%).

In many of the markets, the combination would boost market share above that of Wal-Mart Supercenters, Short added.

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About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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