By Tammy Gray “No store closures are expected as a result of this transaction,” states a press release issued by Albertson’s regarding the proposed merger of the grocery store chain with Safeway. The merger was announced by the companies on March 6. The deal will not be finalized until late this year. “The merger is expected to close in the fourth quarter of 2014 following the satisfaction of customary closing conditions…,” the press release continues. Winslow City Manager Steve Pauken noted that citizens in the community have been speculating about the effect the deal could have on the Safeway store there, but explained that he does not have any information beyond what Safeway and Albertson’s have already provided. “I think we’re going to have to wait and see for a little bit as the information unfolds. The transaction won’t even be completed until the end of 2014,” he said. “At the moment, I suppose every town in Arizona that has a Safeway store is probably wondering the same thing.” According to Albertson’s officials, it will be business as usual at both grocery store chains until the deal is complete. “Until the deal closes, you won’t notice any changes. You can continue to rely on your local store to provide you with the same quality service you have come to know and love,” the company’s website states. Company officials also stated that there are no current plans to merge brands and that Safeway stores will continue to operate under that brand name. No immediate changes in product offerings are expected either. Any changes to stores, such as remodels or product focus, will be considered after the merger is complete. Albertson’s media representative Christine Wilcox noted, “…this transaction does not mean there will no longer be Safeway stores. Safeway has been around since 1915, 24 years longer than Albertsons, and they have strong brands and great stores throughout our market areas, and we have no plans to change their names.” She also pointed out that it is possible some of the stores will be divested, or sold, in order to meet regulatory requirements. “At this time we have no expectation of closing any stores as a result of the transaction. That being said, through the process of regulatory review, we may be required to divest one or more stores to operating companies,” she noted. “The transaction is subject to customary closing conditions and regulatory approval. We will work closely with the relevant regulatory bodies, including the FTC (Federal Trade Commission), to move the process along in a timely manner.” Pauken explained that he has been keeping a close eye on the situation and has been in touch with store officials to try to stay up to date on any possible changes. “Whatever information I can glean from my contacts down in Phoenix, I will report to the community,” he said.
Albertson’s-Safeway Merger Not Likely To Bring Closures
Printed in the March 12, 2014 edition
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