Safeway Gets Second Request From FTC For Merger Plan

(RTTNews) - Safeway Inc. (SWY) said Thursday that it has received a second request from the Federal Trade Commission for additional information and documents in connection with the grocery store chain's plan to merge with private equity firm Cerberus Capital Management LP's supermarket chain Albertsons.

Pleasanton, California-based Safeway said on March 6 that it agreed to acquired by an investor group led by Cerberus Capital Management for more than $9 billion. The deal will merge Albertsons with Safeway, which is the second-largest U.S. grocery chain.

The transaction will create a network that includes over 2,400 stores, 27 distribution facilities and 20 manufacturing plants with over 250,000 employees. However, no store closures are expected.

Safeway noted that the second request by the FTC will extend the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 until 30 days after Safeway and Albertsons have substantially complied with the request.

Further, Safeway said that the company and Albertsons will continue to work cooperatively with the FTC.

Safeway has been divesting its business and simplifying it operations as it struggles to improve sales amidst weak economy and fierce competition from other big retailers. The company had recently exited from the Chicago market, after divesting its Canadian division and spinning-off Blackhawk, its prepaid gift cards and payment service business.

SWY closed Thursday's regular trading session at $37.84, down $0.16 or 0.42 percent on a volume of 3.61 million shares. However, in after-hours, the stock gained $0.07 or 0.19 percent to $37.91.