Nation & World News

Grocery Chains Safeway And Albertson’s Announce Merger Deal

By Scott Neuman on March 6th, 2014

Private equity firm Cerberus Capital Management has offered to buy Safeway, Inc., the nation’s second-largest grocery chain, for a reported $9.4 billion. Cerberus plans to merge Safeway with another grocer, Albertson’s.

“Safeway has been focused on better meeting shoppers’ diverse needs through local, relevant assortment, an improved price/value proposition and a great shopping experience that has driven improved sales trends,” Safeway CEO Robert Edwards said in a statement. “We are excited about continuing this momentum as a combined organization.”

“This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country,” Albertsons CEO Bob Miller said. “Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.”

USAToday writes:

“Last March, Cerberus led a investment group that acquired about 900 Albertsons, Acme, Jewel-Osco , Shaw’s and Star Market stores from Supervalu. That deal, which included a stake in Supervalu, was worth about $3.3 billion. Cerberus earlier acquired about 600 Albertsons supermarkets.”

“It also sought to buy the Harris Teeter chain, but was outbid by Kroger, the nation’s largest supermarket operator, which paid about $2.5 billion.”

“Safeway acknowledged buyout interest Feb. 18, saying management was in ‘discussions concerning a possible transaction involving the sale of the company.’ At the time, Safeway did not disclose suitors.”

Reuters says the merger would “[create] a dominant grocery franchise on the West Coast. It also creates a grocery network of more than 2,400 stores and 250,000 employees.”

The news agency reports that no store closures are expected.

But Forbes says Kroger, the top grocery chain in the country by revenue, is “reportedly considering making its own offer for its competitor.”

Forbes says Kroger “[previously] outbid Cerberus for the Harris Teeter chain of supermarkets, paying $2.4 billion last summer.”

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

This entry was posted in News from NPR. Bookmark the permalink.

Comments are closed.

 

More Stories in News from NPR

#NPRReads: Social Concern And The Drought In California

Also this week, a profile of plus-sized model Tess Holliday, algorithms in plain(ish) English, and suicide clusters in Palo Alto, Calif.


State Department Releases Clinton Emails

The department released the first batch of 296 emails from the former secretary of state’s email accounts, which were provided to the Select Committee on Benghazi in February.


A bird covered in oil flaps its wings at Refugio State Beach, north of Goleta, Calif., on Thursday. More than 9,000 gallons of oil has been raked, skimmed and vacuumed from a spill that stretched across 9 miles of California coast, just a fraction of the sticky, stinking goo that escaped from a broken pipeline, officials said.

Pipeline Operator: Possibly Months To Determine Cause Of Calif. Spill

Plains All American, the company that operates the pipeline, says it has yet to uncover the problem. So far, 9,000 gallons of sludge have been removed from a 9-mile stretch near Santa Barbara.


In this photo released Thursday by a website run by Islamic State militants, damaged Syrian helicopters sit at Palmyra air base, which was captured by ISIS after a battle with the Syrian government forces earlier this week.

Islamic State Reportedly Seizes Last Syria-Iraq Border Crossing

The checkpoint at al-Tanf, known as al-Waleed in Iraq, has been seized, according to a British-based monitoring group that says ISIS fighters now control half of Syria.


Nuns vote on a referendum to legalize same-sex marriage, at a polling station in County Dublin, Ireland, on Friday.

Irish Voters Decide Whether To Legalize Same-Sex Marriage

Polls show the “yes” vote is stronger in the conservative, predominantly Catholic country. But public opinion surveys could be masking a “shy no vote,” observers say.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Underwriting Payments