The Law Office of Lynnette Ariathurai A Professional Corporation

Albertsons to complete business merger with Safeway

The government exists in order to make sure every member of society has a fair chance in all aspects of life, including in business. This is why regulating agencies keep an eye on any proposed business mergers in California and all other states. Regulators are usually concerned about whether a business merger would be detrimental to competition, which is an important part of a free market economic system.

Regulators had expressed concern over a proposed merger between AB Acquisition LLC and Safeway Inc. The Federal Trade Commission (FTC) required AB Acquisition to fulfill certain required actions before allowing the proposed transaction to move forward. The proposed merger was announced in early March and has just recently gained approval from the FTC.

AB Acquisition LLC, owner of the grocery chain Albertsons, was required to agree to divest 168 grocery stores by selling to buyers approved by the FTC before the company was allowed to complete the proposed acquisition of Safeway. Safeway currently operates several grocery store brands, including Vons, Safeway, Pavilions and Randalls. Safeway is one of the nation's largest retailers of food and drugs. The company reported $35.1 billion in sales during 2013.

Even after regulators have approved a proposed business merger, a California-based company will still have to make sure it complies with the rules and regulations that are put in place by the government. Some acquisitions will be more complicated than others depending upon the specific situations. Understanding how to apply the law to each specific case is important throughout an entire business transaction, which is why the help of a legal professional is so often beneficial.

Source: pleasantonweekly.com, "Albertsons, Safeway receive clearance for proposed merger", Jeb Bing, Jan. 28, 2015

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