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Safeway and Albertson's to Merge...or Not

HandelontheLaw.com Staff Writer

Wednesday, April 16, 2014



Safeway and Albertson's to Merge...or Not
Safeway

Cerberus Capital Management, L. P., one of the world’s largest private equity firms, leads a group purchasing Safeway, Inc. for $9+billion and merging Safeway with Albertson’s, Inc., already purchased from SuperValu in 2013. Safeway, Inc., also known in California under the names of Golden State, Vons and Pavilions, is the 2nd largest grocery chain in the United States, while Albertson’s, Inc. is the 5th largest. The merger will reportedly create a considerably larger “2nd largest chain” (second only to The Kroger Company), with 250,000+ employees in 20 manufacturing plants, 27 distribution facilities and 2,400+ stores, all of which are expected to remain open. If all goes as planned, the deal will be finalized in the 3rd quarter of 2014.

The purchase/merger is certainly not “out of the woods.” Safeway investors filed suit the day after the merger announcement. Slated to receive $40 per share, including $32.50 in cash, Safeway investors reportedly allege that Safeway’s board of directors breached their fiduciary duty to the stockholders by failing to shop around for a more favorable deal. Rigrodsky & Long, P. A., a national law firm with offices in Delaware and New York, is investigating those allegations and other possible violations, and is seeking owners of common Safeway stock who purchased those shares prior to March 6, 2014 and wish to give or obtain related information.


By Kathy Catanzarite


Source: Kathy Catanzarite - Handelonthelaw.com Staff Writer

Note from HandelontheLaw.com: This article is to be used as an educational guide only and should not be interpreted as a legal consultation. Readers of this article are advised to seek an attorney if a legal consultation is needed. Laws may vary by state and are subject to change, thus the accuracy of this information can not be guaranteed. Readers act on this information solely at their own risk. Neither the author, handelonthelaw.com, or any of its affiliates shall have any liability stemming from this article.





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