FTC Approves Takeover of Lucky Chain : American Stores Needs OK to Sell Some Outlets

American Stores Co. said Wednesday that it has won government approval for its $2.5-billion plan to purchase the Lucky Stores supermarket chain.

The Federal Trade Commission approval comes three months after Lucky agreed to the takeover. On Monday, the FTC approved Vons Cos. $408-million purchase of Safeway’s 172 Southern California food stores.

The FTC tentatively approved the merger May 31. At the same time, it announced that American and Lucky must sell 37 stores. American Stores, based in Irvine, said Wednesday that sale of the stores must be approved by the FTC and that won’t occur before Sept. 28.

Combining Lucky with American’s Alpha Beta stores would create the nation’s largest supermarket chain. The new operation would also eliminate the 73-year-old Alpha Beta name as the stores gradually convert to Lucky operations.

Some Opposition

The agency’s approval comes despite opposition from State Atty. Gen. John Van de Kamp, who had argued that the merger would reduce competition and leave two powerhouse chains--American and Vons--in Southern California.

More than 50 consumers also had objected to the merger, virtually all of them voicing concern that the consolidation would mean higher prices at checkout counters.

American Stores, however, has disputed that, saying that California consumers will save as much as $60 million annually after the acquisition because the chain will pass along savings from lower advertising costs and economies of scale in its manufacturing, distribution and warehouse operations.

Alpha Beta has 248 stores in California. Lucky now operates 343 stores in the state, including 25 under the Food Basket name in San Diego.