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What are some details surrounding the Safeway buyout?

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Quick Answer

In early 2014, Safeway, an American grocery store chain, was acquired for the price of $9 billion to a private equity firm that also acquired Albertsons, another American grocery store chain. Under this buyout, Safeway and Albertsons began a corporate brand merger. Combined, the two brands controlled more than 2,000 grocery stores in the United States as of March 2014, reports King5, an NBC affiliate in Washington State.

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Full Answer

As the result of the merger, some stores that were previously branded as an Albertsons or a Safeway are changing to a different, third brand that is not affiliated with the merger, as of 2015. On the West Coast of the United States, this means that many Albertsons or Safeway locations are being converted into Haggen grocery stores.

This is the result of a Federal Trade Commission ruling that the Albertsons-Safeway merger would monopolize too much of the grocery market share. This led Haggen, a Washington-based grocery store chain, to take ownership of more than 140 grocery stores in order to lessen Albertsons' and Safeway's market share. As of 2015, Haggen began a rolling takeover of grocery stores in Western states such as Washington, Oregon, California, Nevada and Arizona, according to the Oregonian. Other grocery stores will take ownership of Albertsons and Safeways in Montana and Texas.

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