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Safeway, Albertsons Announce Merger

The merger will likely be completed by the end of 2014.

Patch photo archive
Patch photo archive
By Bay City News—

Safeway Inc. and Albertsons today announced a merger agreement for the two grocery chains under which the owner of Albertsons will buy all outstanding Safeway stock in a $9 billion deal.
 
The combination of Pleasanton-based Safeway's 1,335 stores in 20 states with the 1,075 outlets of Boise, Idaho-based Albertsons will create a nationwide network of more than 2,400 grocery stores, the two companies said in a statement released today.
 
The companies said they expect administrative cost savings, but don't expect to close any stores. The Safeway shares will be bought by AB Acquisition, which owns the Albertsons chain and is controlled by Cerberus Capital Management LP.
 
The merger is expected to be completed by the end of 2014. The agreement also provides for a three-week so-called "go-shop" period in which Safeway can receive and consider alternate proposals, the companies said.
 
Safeway President and Chief Executive Officer Robert Edwards said, "This merger is one of several actions we have taken in recent months as a result of our strategic business review.
 
"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. We are excited about continuing this momentum as a combined organization," Edwards said in the press release.
 
If the merger proceeds as planned, Edwards will become president and CEO of the combined company, while Bob Miller, the current CEO of Albertsons, will become executive chairman.
timothy March 08, 2014 at 02:32 PM
Pleasanton will be hit very hard with many jobs lost. That is the big story.
CHACHA March 08, 2014 at 02:52 PM
I heard Mike was last seen going to visit his dear "grammer" (grandma) for cookies, apple pie and a spelling and grammar lesson! LOL! Great News! Just got word from my son who works for SWY Corp that many of the SWY Corp employees in Pleasanton will not be displaced or lose their jobs, though, personally I dont see how n/or why some or a few employees wouldnt lose their jobs thank goodness! Time will tell, I will keep you posted on any future SWY news, as many of the news-media was either misled or a result of poor reporting n/or bad 411 (info), lol! Not to mention it still has to be approved by the Fed, and now "Kroger Stores" wants in to bid on this deal too, so other things could happen!
timothy March 08, 2014 at 04:31 PM
Hope you are right Chacha
Dwayne Hoover March 08, 2014 at 07:02 PM
ChaCha's got it right. Safeway was not bought by Albertsons. It was bought by Cerberus. They are a capital management company. They buy stuff that needs to be restructured due to either bad business or changing economic models. "Super"markets are a dying breed. The mega stores like Costco and Sam's Club are beating them from the top. TJ's, Sprouts and dozens if not hundreds of neighborhood stores around the country are beating them from the other end. And the middle can't survive either because Walmart, Target, and other discounters are beating them in that space. Anyone that does not believe this needs to consider just one thing. Go to all of the other type stores, look at how busy they all are. Then realize that every dollar that goes to Costco, TJ's, Grocery Outlet, Walmart, etc is one more dollar that no longer goes to Safeway, Lucky, Albertsons, or the other "super"markets. The future will not look like the past. This buyout is just one of many that have already happened nationwide, such as Kroger buying Harris Teeter. This is step one in the downsizing and eventual elimination of the 1950's - 90's era "Super"market.
Dwayne Hoover March 08, 2014 at 07:09 PM
One other thing. If the City of Hercules continues to go along with the sale of its property to Safeway/Albertsons/Cerberus and continues down the path of building a "super"market/parking lot/gas station type store it will be building obsolescence. It will be planning and developing a 20th century concept even though we are 14 years into the 21st century. The future will eventual show it to be the folly that it is.

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