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Albertsons, Safeway receive clearance for proposed merger

Deal to be completed in 4 days; Safeway to be delisted from New York Stock Exchange

AB Acquisition LLC, which owns Boise-based Albertsons, and Pleasanton-based Safeway Inc. have received clearance from the Federal Trade Commission for the companies' proposed merger, which was announced on March 6, 2014.

The FTC's clearance follows Albertsons' and Safeway's agreement to a proposed consent order, which includes a commitment to divest 168 stores.

As previously announced, Albertsons and Safeway entered into agreements to sell these stores to four FTC-approved buyers. Albertsons and Safeway also agreed to settlements with the attorneys general of California, Nevada and Washington.

Albertsons and Safeway expect to complete the merger this week.

Safeway, which operates Safeway, Vons, Pavilions, Randalls, Tom Thumb and Carrs stores, is a Fortune 100 company and one of the largest food and drug retailers in the U.S. with sales of $35.1 billion in 2013.

The company's common stock is currently traded on the New York Stock Exchange under the symbol SWY. The company's securities will be delisted from the NYSE upon closing of the merger.

Established in 2006 when it acquired Albertsons, AB Acquisition LLC also operates ACME, Jewel-Osco, Lucky, Shaws, Star Market and Super Saver, and stores under the United Family of stores, Amigos, Market Street and United Supermarkets.

The company is privately owned by Cerberus Capital Management, Kimco Realty Corporation, Klaff Realty, Lubert-Adler Partners and Schottenstein Stores Corporation.

Along with the merger approval, Safeway alsoannounced that it is extending its offer to purchase senior notes due in 2019, 2020 and 2021.

The Offer was previously extended on Jan. 22, after which, it was scheduled to expire at 5 p.m. Eastern time Tueday, Jan. 27.

The offer is now being further extended until 5 p.m. Eastern tomorrow, Friday, Jan. 30, unless further extended or withdrawn by Safeway.

The depositary for the offer has advised Safeway that, as of 5 p.m. Jan. 27, approximately $228,474,000 principal amount, or 45.69% of the outstanding principal amount, of the 2019 Senior Notes, $367,658,000 principal amount, or 73.53% of the outstanding principal amount, of the 2020 Senior Notes and $272,518,000 principal amount, or 68.13% of the outstanding principal amount, of the 2021 Senior Notes had been validly tendered.

Requests for documents and questions regarding the procedures for tendering Senior Notes may be directed to D.F. King & Co. Inc. at (866) 751-6309.

For more information on the merger, sign on to www.Albertsons.com/ or www.Safeway.com/

Comments

2 people like this
Posted by Sad
a resident of Highland Oaks
on Jan 28, 2015 at 1:16 pm

When will they layoffs be announced?


4 people like this
Posted by Registered Joe
a resident of Another Pleasanton neighborhood
on Jan 28, 2015 at 3:53 pm

It's not "Sad" at all. As consumers we're constantly demanding lower prices...the companies are simply responding to our demand. The merger is designed to improve operational efficiency so that the joined companies can continue to exist in a competitive market.


8 people like this
Posted by No
a resident of another community
on Jan 28, 2015 at 4:47 pm

Joe, that is not what the merger was about.
And indeed, it is sad for the employees who will flood the job market at once after having been led on and lied to by the company for a long time.


2 people like this
Posted by Registered Joe
a resident of Another Pleasanton neighborhood
on Jan 29, 2015 at 7:16 pm

Of course the merger is about remaining able to compete. As an example, there is a Safeway store in Mt View which is within walking distance of a Wal-Mart and a Target. There's no way that and other Safeway stores can continue to operate at a profit unless something is done to reduce operational costs. Bigger grocery chain = move leverage with suppliers = lower prices to consumers. Thus far, Safeway has done an admirable job of keeping their stores mostly up-to-date and stocking with a large variety of items. There is just enough higher-quality merchandise to compete with the Whole Foods of the world, and enough low-price specials to compete with the Lucky and Save-Mart stores.


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