In early 2015, Safeway Inc. and Albertsons Companies Inc. announced a definitive merger agreement in which Safeway would be acquired by Albertsons. The combined company would operate under the Albertsons banner and have headquarters in Boise, Idaho. The merger was completed in January 2015.
The two companies had a long history. Safeway was founded in 1915, and Albertsons was founded in 1939.
Both companies had grown to be large regional grocery chains. In the early 2000s, both companies expanded rapidly through acquisitions.
The merger of Safeway and Albertsons created the second largest grocery chain in the United States, with over 2,400 stores and 250,000 employees.
The merger was completed through a cash and stock transaction. Safeway shareholders received $40 in cash and 0.3182 of an Albertson’s share for each Safeway share they owned. The total value of the deal was approximately $9 billion.
The merger of Safeway and Albertson’s was completed in early 2015 through a cash and stock transaction.
