A&P has said its planned acquisition of fellow US retailer Pathmark will not go ahead for a further two months while an anti-competition investigation continues.
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A&P said yesterday (16 July) that both companies had “submitted certifications of substantial compliance” with the Federal Trade Commission on Friday.
The information handed to the FTC followed a request for more information on the proposed takeover from the anti-trust watchdog.
A&P, which is looking to buy Pathmark in a US$1.3bn deal, said the companies could not “consummate” the deal for at least 60 days after the extra information was handed.
The retail group, in which German conglomerate A&P is the majority shareholder, said it and Pathmark are “continuing to cooperate” with the FTC.
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By GlobalDataLast month, Pathmark posted first-quarter financial results that suggested the company’s sale to A&P was hurting its bottom line.
For the three months ending 5 May, Pathmark posted a net loss of $8.5m, up from $5.4m a year earlier. Sales were flat, reaching $999m, inching up from $998.5m a year ago.
Costs related to its proposed sale reached $5.2m.
