Standard Parking Corp. to Reduce Interests in 29 Cities
Following Standard Parking Corporation’s proposed acquisition of Central Parking Corporation, the Department of Justice is requiring the company to divest its interests within 29 cities and 21 states. On September 26, 2012, the Department announced that without the requirement for divestitures, the merger would have created a dominant presence in 29 different cities and hiked parking prices.
The Antitrust Division under the Department of Justice has also filed a lawsuit with the U.S. District Court in the District of Columbia to stop the acquisition.
The Department notes that Standard and Central are biggest parking management companies in the country. Because these companies fiercely compete by offering special incentives and better hours of operation in parking garages and lots, consumers have received lower parking prices and better services.
If the acquisition is approved, the Department is requiring Standard and Central to divest a percentage of their presence I the following central business districts: Atlanta, Baltimore, Bellevue, Boston, Charlotte, Chicago, Cleveland, Columbus, Dallas, Denver, Fort Myers, Fort Worth, Hoboken, Houston, Kansas city, Los Angeles, Miami, Milwaukee, Minneapolis, Nashville, New Orleans, New York City, Newark, Philadelphia, Richmond, Sacramento, and Tampa.
If the acquisition is approved, Standard and Central will have to divest at least 107 parking facilities in the central business districts listed above.
Standard is based out of Chicago and operates in 41 states. They own roughly 2,200 parking facilities and about 1.2 million parking spaces. Their total revenue was estimated at $729 million in 2011. Central is based out of Nashville and operates in 38 states. They own about 1 million parking spaces, and their total revenue was estimated at $800 million in 2011.
The acquisition is valued at $345 million, and the requirements for divestitures will save consumers about $85 million. Acting Assistant Attorney General Joseph Wayland commented, “These divestitures will ensure that consumers in the affected cities and states will receive better services.”
Source: Department of Justice
Comments
Must Read
Agency CreationOrganization & Structure:An agency is a concept in business law where one person, called the principal, gives authorization to another person, called the agent, to act on the principal's behalf.
Agency Powers & The ConstitutionThe United States Government will oversee the operations of its independent regulatory agencies.
All You Need to Know About the Consumer AffairsThe Department of Consumer Affairs is an important agency that works to provide information to consumers on every level in order to help them better protect their rights regarding businesses, scams, and various other issues.
ConsumerConsumers can be an individual, household, or specific group of people who utilize specific goods and services.
Consumer Credit Quick OverviewConsumer credit is a type of financial system in which an individual borrows money from a lender in order to pay for goods or services.
Consumer Product SafetyConsumer product safety is one of the key areas of interest regarding products that are created in the United States.
Consumer Product Safety CommissionThe Consumer Product Safety Commission is an agency that looks over various products made in the United States.