Safeway and Albertsons officially merged
It's the end of an era for Safeway and Albertsons, as the companies announced they have completed their merger, ending a nearly year-long process that began in 2014.
AB Acquisition LLC, the owner of Albertson's and New Albertson's, Inc., will acquire all outstanding shares of Safeway. The merger will create a diversified network that includes 2,230 stores, 27 distribution facilities and 19 manufacturing plants with more than 250,000 employees across 34 states and the District of Columbia.
The new company will be comprised of three regions and 14 retail divisions, supported by corporate offices in Boise, Idaho, Pleasanton, California, and Phoenix, Arizona. Banners will include Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Albertsons, ACME, Jewel-Osco, Lucky, Shaw's, Star Market, Super Saver, United Supermarkets, Market Street and Amigos.
In December, the companies announced the sale of 168 stores to four separate buyers, as divestitures required in order to secure U.S. Federal Trade Commission approval of the transaction. Safeway shareholders will receive $34.92 per share in cash.
In addition, in April 2014, Safeway stockholders received a distribution of stock in Safeway's former Blackhawk Network Holdings, Inc. subsidiary valued at approximately $4.02 per Safeway share at the time of the distribution.
As a result of the completion of the merger transaction, the common stock of Safeway will no longer be listed for trading on the New York Stock Exchange or any other securities exchange. Safeway will file a Certification on Form 15 with the U.S. Securities and Exchange Commission to suspend Safeway's reporting obligations.
"We plan to be the favorite local supermarket in every community we serve," said Safeway president and CEO Robert Edwards, who becomes president and CEO of the newly combined company, effective immediately. "We will do this by knowing, listening to, and delighting our customers; providing the right products at a compelling value; and delivering a superior shopping experience. We will also continue to be active members of our local communities."
As previously announced, current Albertsons CEO Bob Miller will become executive chairman.
"This is a transformative day for both Albertsons and Safeway,” said Miller. “This merger creates a unified, strong organization that is dedicated to bringing a better shopping experience to more customers across the country. Our combined geographic footprint, vast range of brands and products, and service-oriented staff will enable us to meet evolving shopping preferences."