PLEASANTON, Calif., March 7 (UPI) -- Grocery store chain Safeway, based in California, announced it has been bought out and will merge with Idaho-based chain Albertsons.
Safeway's Pleasanton headquarters announced Thursday the company has been purchased for $9.4 billion by private equity firm Cerberus Capital Management and will be merged with Albertsons, the San Jose (Calif.) Mercury News reported Friday.
Analysts said the merger could lead to lower prices for consumers, but some Safeway employees may find themselves out of their jobs if antitrust regulations and duplication between the companies lead to the sales and closures of individual stores.
"As our customers need change, we have to adapt (to) a world where they have more options than ever." said Bob Miller, chief executive officer of Albertsons' and executive chairman of the new supermarket conglomerate.
The combined chains will have a total 2,400 stores, nearly the double the current number of Safeway stores and just shy of the about 2,600 stores run by rival chain Kroger.