Headlines

Cerberus Buys Safeway

Plans would merge Safeway and Albertson’s for 2400-store operation

Published

10 years ago

March 7, 2014

steve kaufman

Private equity investor Cerberus Capital Management LP (New York) has put together a group to acquire Safeway Inc. (Pleasanton, Calif.) for more than $9 billion.

Cerberus reportedly plans to merge Safeway with Albertsons, a smaller supermarket operator it already owns. This combined operation would run more than 2400 stores. Sector leader Kroger Co. (Cincinnati) also operates roughly 2400 stores.

“Working together will enable us to create cost savings that translate into price reductions for our customers,” said Albertson’s ceo Bob Miller. “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.”

Safeway president and ceo Robert Edwards said these cost savings would help counter regulators’ concerns. “Competitive position for the combined company would allow it to reduce prices,” he told reporters.

“There are no store closures planned at this time based on this merger,” said Albertson’s Miller, who will become the executive chairman of the new company. Edwards will become ceo for the combined grocery store businesses.

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