Safeway, the second largest United States grocery store chain, has been sold, and it was for a great amount. Christian Science Monitor reported on March 7, 2014, that Safeway sold for $9.4 billion, and is set to merge with supermarket chain Albertson's, which is backed by private equity firm Cerberus Capital Management.
Safeway being sold and the merger is set to create a chain of more than 2,400 grocery stores, 20 manufacturing plants, and over 250,000 employees. There are not expected to be any store closures and the deal is expected to complete in the fourth quarter of 2014.
Albertson's offer price was at $40 per share and Safeway closed on Thursday evening at $39.47 per share.
Cerberus purchased Alberton's and Jewel-Osco from Supervalu for $3.3 billion in early 2013. They are now pushing ahead with the purchase of Safeway, and are looking to become a giant that everyone else competes against.
The company's $40 per share includes an offer of $32.50 in cash to shareholders, and other distributions at an estimated value of $3.65 per share. This also includes a distribution of stock in Blackhawk Network Holdings which are worth $3.95 a share.
In the deal, Safeway is going to consider other offers greater than Albertson's $40 per share deal for the next 45 days. Kroger is also looking to buy Safeway and become another giant supermarket chain.