August 31, 2005
CURRAN ANNOUNCES AGREEMENT RESOLVING ANTITRUST CONCERNS
IN FEDERATED-MAY MERGER
Agreement Ensures Four Malls Get New Department Stores
Attorney General J. Joseph Curran, Jr. today announced an
agreement to resolve antitrust concerns raised by the
merger of the two
largest department store companies in the United States.
requires Federated Department Stores of Cincinnati, Ohio, operator
of major department stores, including Macy’s and Bloomingdale’s,
and the May Company of St. Louis, Missouri, which operates stores
in Maryland under the Hecht’s and Lord & Taylor names,
to sell to competing department stores the four stores the merged
companies plan to close in Maryland.
Curran said the companies had announced that after the merger,
Federated would divest one of its stores in each of the four
malls in Maryland having both a Hecht’s and a Macy’s: White
Marsh, Owings Mills, Marley Station and Wheaton. Under the agreement,
Federated and May will sell the stores to another department store
or to a mall developer with plans to use the store for a department
store even if it gets a higher bid for the stores for some other
use. The department stores to which the properties can be sold
include the BonTon, Boscov’s, Dillard’s, Elder Beerman,
Gottschalks, Nordstrom, Neiman-Marcus, Saks Fifth Avenue, Saks
Department Store Group, Belks, Proffits, MacRaes, and Von Maur.
The sales are subject to a minimum bid which will be set by an
independent appraiser selected by Federated, but approved by
General Curran and the Attorneys General of California, Massachusetts,
New York and Pennsylvania, who also joined in the agreement.
With this agreement we ensure that Maryland consumers will continue
to have a choice of traditional department stores when they shop,” Curran
said. ”Competition leads to higher quality and lower prices.”