FTC approves sale of Albertsons

BOISE — Albertsons Inc., the nation's second-largest grocery store chain, announced Tuesday that the Federal Trade Commission has approved the $9.7 billion sale of the company to a consortium led by Minnesota-based grocer Supervalu Inc. and drugstore chain CVS Corp.

No divestiture of retail stores or other assets of the companies was required by the FTC and no conditions or restrictions were placed on the transaction. The required pre-merger waiting period for the transaction has also expired.

Albertsons President and CEO Larry Johnston said last week the sale of the company was expected to close within four months, pending approval of the transaction by both Albertsons and Supervalu shareholders.

Albertsons shareholders will receive about $26.29 in cash and Supervalu stock for each Albertsons share. Supervalu will pay about $6.3 billion in stock and cash and assume about $6.1 billion in Albertsons debt for the 1,124 stores and in-store pharmacies under the Osco and Sav-on brands.

CVS of Woonsocket, R.I., is purchasing about 700 stand-alone Sav-on and Osco Drugstores and a distribution center in La Habra, Calif., for $2.93 billion in cash. It will also acquire real estate interests in the drug stores for $1 billion.

The other buyers, led by Cerberus Capital Management, will acquire 655 stores in Texas, California, Florida, the Rocky Mountains and the Southwest. The group plans to operate the stores under the Albertsons name.

Only Kroger Co. will be larger once Supervalu takes over 1,124 stores under the Albertsons, Acme Markets, Bristol Farms, Jewel-Osco, and Shaw's Supermarkets banners. The expanded Supervalu will have 2,656 stores nationwide.

In trading on the New York Stock Exchange, Albertsons shares rose 19 cents Tuesday, to close at $25.79, while shares of Supervalu fell 12 cents to $31.83 and CVS shares rose 51 cents, or 1.7 percent, to $30.57.