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

A photo from 2011 shows Roberto Gómez Bolaños and his wife Florinda Meza at the 25th Annual Hispanic Heritage Awards at The John F. Kennedy Center in Washington. Bolaños reportedly died on Friday at age 85.

Mexican TV Icon Roberto Gómez Bolaños Dies At 85

The actor, writer and director was a staple of Mexican television comedies and children’s programs for decades.


Ray Rice arrives with his wife Janay Palmer for an appeal hearing of his indefinite suspension from the NFL, on Nov. 5. in New York.

Ray Rice Wins Appeal, Reinstated By NFL

The former Baltimore Ravens running back had been suspended indefinitely after a video surfaced showing him hitting his then-fiancee.


Attack On Mosque In Nigeria Kills Dozens

Authorities believe the attack in the northern city of Kano was the work of Boko Haram militants, although the group did not immediately claim responsibility.


Police tape marks off the scene after authorities apparently shot and killed a man who they say opened fire on the Mexican Consulate, police headquarters and other downtown buildings early Friday.

Texas Man Killed After Firing At Government Buildings

The gunman fired more than 100 rounds at a federal courthouse, a bank and the Mexican consulate before trying to set the consulate on fire. He died during a shootout with authorities.


America’s Black Friday Craziness Has Crossed The Pond

The wild discount shopping that once was only a U.S. phenomenon has caught on in the U.K. and elsewhere, thanks largely to online retail giant Amazon.


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
Day Sponsorship Payments
Underwriting Payments