IT HAPPENED…read more here
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?
If you like this, see the most recent deals we’ve found here!