California v. American Stores Company
Justice O’CONNOR, Circuit Justice.
Applicant, the State of California, requests a stay of the mandate of the judgment of the United States Court of Appeals for the Ninth Circuit, pending disposition of its petition for a writ of certiorari.
Applicant, through its attorney general on behalf of himself and as parens patriae, brought the underlying action as a private plaintiff to enjoin the merger of respondent Lucky Stores, Inc., the largest retail grocery chain in California, and respondent American Stores Company, operator of Alpha Beta, the fourth largest retail grocery chain in California.* Applicant contends that the merger would substantially lessen competition in the relevant markets, in violation of § 7 of the Clayton Act, 38 Stat. 731, as amended, 15 U.S.C. 18, § 1 of the Sherman Act, 26 Stat. 209, as amended, 15 U.S.C. 1, and California’s Cartwright Antitrust and Unfair Competition Acts, Cal.Bus. & Prof.Code §§ 16700-16761 and 17200-17208 (West 1987 and Supp.1989).
The District Court granted applicant’s motion for a preliminary injunction and ordered respondents to operate the two companies independently and refrain from merging or integrating their assets and businesses during the pendency of the action. 697 F.Supp. 1125 (CD Cal.1988). The court concluded:
“The overwhelming statistical evidence has demonstrated a strong probability that the proposed merger will substantially lessen competition in violation of Section 7 of the Clayton Act. This showing has not been