Albertsons to Buy Out Safeway / Vons?


Albertsons to Buy Out Safeway/Vons?Albertsons to Buy Out Safeway/Vons?


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It appears that the parent company of Albertsons is set to buy out Safeway/Vons to create “a dominant grocery franchise on the West Coast”  according to Reuters

Safeway stores include: Vons, Carrs, Dominick’s, Genuardi’s, Pavilions, Randalls, and Tom Thumb.

A deal would represent one of the largest leveraged buyouts since the financial crisis. Safeway has a market capitalization of roughly $8.7 billion and $5.6 billion of total debt as of September.

A deal would unite Safeway with Cerberus’ Albertsons chain, creating a dominant grocery franchise on the West Coast. It would allow Cerberus to cut costs by leveraging Safeway’s back office operations, technology and manufacturing plants, analysts said.

However, such a merger could spark antitrust concerns in the Southern California region where both grocery chains have a big presence, and may require some divestitures in that area.


I love Vons and their Just4U program. And, honestly I’ve never been much a fan of Albertsons even though its the closest grocery store to my house. If Albertsons and Vons combine, it’s likely that under-performing locations and stores that are in close proximity to one another will shut down. And that is bad news for all consumers, because that means less competition in the grocery space.

In Southern California that will leave us with the new Albertsons/Vons, Ralphs, Stater Bros, Target and Walmart as the big players.

What’s your favorite grocery store in So Cal?

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  1. Ii love my Albertson’s market!! They are a lot less expensive than the over priced Von’s Pavillion market. A package of spinach at Von’s is $1.50 more expensive than Albertson’s. Von’s is newer looking but I prefer to save $$$ over fancy stores. Ralph’s is also cheaper than Von’s. I price compare. Von’s is expensive. A 6 pack liter size of Evian water is $1.oo more than Albertson’s & Ralph’s. I ONLY go to Von’s if I have to or if tyhe other stores are out of what I need. Von’s is always well stocked. probably because no one buys stuff but that is not true because they are very busy. A lot of Beverly Hills residence shops there. Money is no object to those people. For average to poor we shop at Ralph’s and Albertson’s.