Albertsons-Safeway Merger Set To ProceedMarch 31, 2014
Following the end of the “go-shop” period, the proposed $9 billion Safeway-Albertsons merger is now set to go before the U.S. Federal Trade Commission (FTC) for review. The Safeway board’s acceptance of the $40-per-share offer from Albertsons’ owner—a Cerberus Capital-led consortium—earlier this monthwas followed by a 21-day period in which Safeway was permitted to solicit other offers. No other bidders emerged during that process, thereby bringing the two grocery giants one step closer to joining forces.
Together, Albertsons and Safeway operate more than 2,400 grocery stores in the U.S. It’s expected that the FTC will require store closings in markets where the two chains’ presence is especially prevalent—such as Southern California—before approving the deal.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.