The largest U.S. provider of funeral and cemetery services has agreed to sell some of its assets to resolve federal charges that a proposed $1.4 billion deal to purchase a smaller rival would substantially lessen competition in the industry. Houston-based Service Corp International in May announced a deal to buy Stewart Enterprises Inc.SCI owns and operates more than 1,449 funeral-services locations and 374 cemeteries, including 213 combined funeral-services/cemetery locations, as well as 100 crematories, according to the U.S. Federal Trade Commission, which announced the terms on Monday.Stewart is the second-largest funeral and cemetery services provider in the nation, with 217 funeral homes and 141 cemeteries in 24 states and Puerto Rico.Although the two firms together now have only about 16 percent of the U.S. market, in certain communities their market share would be more dominant according to the FTC, which works with the U.S. Justice Department to ensure that mergers comply with antitrust law.
Shares of SCI traded higher by 0.46% or $0.08/share to $17.47. In the past year, the shares have traded as low as $13.54 and as high as $19.59. On average, 1170370 shares of SCI exchange hands on a given day and today's volume is recorded at 605234.
Stewart Enterprises, Inc. is a provider of funeral and cemetery products and services in the death care industry in the United States. Shares of STEI traded higher by 0.15% or $0.02/share to $13.25. In the past year, the shares have traded as low as $7.15 and as high as $13.26. On average, 425453 shares of STEI exchange hands on a given day and today's volume is recorded at 442805.
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