FTC Clears Safeway, Albertsons Merger - Update

(RTTNews) - Supermarket chains Safeway Inc (SWY) and Albertsons on Tuesday said the U.S. Federal Trade Commission has approved their near $9.4 billion merger.

The FTC approval follows a commitment by the two companies to sell 168 stores in eight states to address antitrust fears. As previously announced, Albertsons and Safeway entered into agreements to sell such stores to four FTC-approved buyers.

The FTC said that without the store sales, the merger would have lessened competition in 130 local markets in Arizona, California, Montana, Nevada, Oregon, Texas, Washington and Wyoming.

Albertsons and Safeway also agreed to settlements with the attorneys general of California, Nevada and Washington.

The merger, announced last March, is expected to be completed within the next five business days, the companies said.

Albertsons has 630 supermarkets under various brand names, and Safeway has 1,332 stores. The merger will present a strong rival to Kroger Co, the biggest U.S. grocery store chain.

SWY is trading at $35.22, up $0.12 or 0.33%, on a volume of 4.7 million shares on the NYSE.