Safeway deal seen driving efficiencies

Safeway deal seen driving efficiencies

“With all those stores coming together, there should be huge gains in logistics, purchasing and overhead economies, leading to greater efficiencies.” —CHUCK CERANKOSKY, Northcoast Research

The proposed merger of Safeway and Albertsons could benefit from Safeway’s consumer-data analytics and strong brands and enable Safeway able to strengthen its West Coast base, analysts told SN.

Safeway has agreed to be acquired for approximately $9 billion by AB Acquisition Co. a consortium led by Cerberus Capital Management, New York. The deal is expected to be consummated by the end of 2014, resulting in a company with 2,400 stores and volume approaching $60 billion.

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