Private equity firm Cerberus Capital Management plans on buying Safeway Inc for $9.4 billion, it was announced on Thursday.
According to USA Today, the No. 2 grocery chain in the U.S. will merge with Albertsons. Supervalu sold Albertsons, Acme, Jewel-Oscar to Cerberus in 2013 for $3.3 billion.
Safeway CEO Robert Edwards explained, "This merger will improve our competitive position... cost savings and lower consumer prices. Edwards will become the CEO of the new merged companies, while Albertsons CEO will be the executive chairman.
Though the plan is not to close any stores, some might have to be sold off if the Federal Trade Commission makes that request.
The move follows Safeway's recent sales of other parts of the company, including Blackhawk Network Holdings Inc, reports Reuters. The company also parted ways with its Canadian business. That was sold to retailer Sobeys, netting Safeway $5.8 billion.
Safeway has continued to look for ways to grow stronger, such as eventually backing out of markets that were weak, such as in Chicago.
image courtesy of Wikimedia Commons
