Safeway sold to investment group representing competitor Albertsons for $9.4 billion. Cerberus Capital Management made the deal, which was approved by Safeway's Board of Directors unanimously. According to I4U on Mar 7, shareholders will receive about $40 per share.
Investors at Safeway are entitled to receive $40 per share, consisting of $32.50 in cash.
Safeway sold to the investment firm, which owns Albertsons will now make the chain the number one competitor to Kroger. The chain will now consist of over 2,000 stores and 240,000 employees. None of the stores will be closing according to the company.
CEO Robert Edwards will head Safeway sold to Albertsons up. Albertsons CEO will be the executive chairman going forward. It is expected that the national company will have revenues of $60 billion and be well represented in markets from coast to coast.
The Safeway-Albertsons merger will likely be completed in the fourth quarter. The company that Safeway was sold to, AB Acquisition also operates Albertsons, ACME, Jewel-Osco, Lucky, Shaw's, and Star Market. The $40 per share price represents a premium of 1.3 percent to Thursday's closing price.
This was not the first time Safeway sold. The grocery chain was taken private before by KKR in 1996, then sold off in 1999.
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