Albertsons and Safeway have released the details of the leadership team and organisational structure which will take effect upon the closing of the proposed merger transaction between the two retailers.
Three regions, four divisions, no banner changes
When the deal was initially announced, it was revealed that Safeway’s President & CEO, Robert Edwards, would lead the combined group. The broader leadership team which will report into him consists of both Albertsons and Safeway executives, demonstrating that the company is seeking to leverage best practices and capabilities from across both businesses. This will ensure that the company hits the ground running when the transaction is closed.
Albertsons and Safeway: the story so far
Having revealed in February that it was in discussion with regards to the possible sale of the company, in March, private equity group Cerberus made a $9bn agreed bid for the company. This paved the way for the creation of a major grocery retailing group in the US, given that an affiliate Cerberus, AB Acquisition LLC, is the parent company of Albertsons LLC, which operates over 1,000 stores across the US.
Transaction expected to close in the fourth quarter
The transaction is yet to close given pending regulatory approvals. Bringing two businesses of this scale together will inevitably lead to some overlap in store estates, and divestments are likely to be required. Even with some disposals, the enlarged company is expected to operate almost 2,400 grocery stores, second only to Kroger among supermarket operators in the US. Safeway shareholders approved the transaction in July, and it is expected to close in the fourth quarter.