Group completes $8B acquisition of Safeway

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By Mike Gertzman By Mike Gertzman

BOISE, Idaho (AP) -- An investment group led by Cerberus Capital Management has completed its approximately $8 billion acquisition of supermarket chain Safeway.

The investment group led by Cerberus agreed to buy Safeway in March 2014. Safeway shareholders will receive $34.92 per share in cash.

Safeway Inc. has more than 1,300 U.S. locations under names including Safeway, Vons, Pavilion's, Randall's, Tom Thumb and Carrs. Cerberus and other investors own Albertsons, Acme, Jewel-Osco, Lucky, Shaw's and other stores through a company called AB Acquisition LLC.

Last month the companies agreed to sell 168 stores to four buyers in order to obtain Federal Trade Commission approval for the deal.

The combined company will include 2,230 stores, 27 distribution facilities and 19 manufacturing plants with more than 250,000 employees across 34 states and the District of Columbia. It will have corporate offices in Phoenix, Arizona; Boise, Idaho, and Pleasanton, California.

Safeway President and CEO Robert Edwards will serve in those roles for the newly combined company, with current Albertsons CEO Bob Miller becoming executive chairman.

"Our combined geographic footprint, vast range of brands and products, and service-oriented staff will enable us to meet evolving shopping preferences," Miller said in a statement.

Safeway will no longer list on the New York Stock Exchange.