Albertson’s entered into an agreement to acquire the Lucky Markets and Sav-On drug stores from American Stores. The FTC and the Plaintiff States sought to enjoin the merger, alleging that the merger would substantially impair competition in the supermarket industry and could result in price increases and decreases in the quality and selection of food, groceries and services. In order to consummate the merger, the parties entered a settlement agreement in which Albertson’s agreed to divest 104 supermarkets and American Stores agreed to divest 40 supermarkets throughout California, Nevada and New Mexico. Additionally, the companies were prohibited from acquiring supermarket assets in the areas from which divestiture occurred, without providing prior written notice to the FTC and the Plaintiff States.