Cerberus Closes Deal On Albertsons With Caveat

Cerberus Capital Management, the private equity firm that owns grocery store chain Albertsons, has closed the deal with Safeway Inc. (NYSE:SWY), but a final bailout clause still leaves an opening for competing grocery chain The Kroger Co. (NYSE:KR).

According to a report in the Wall Street Journal, Safeway Inc. has agreed to an acquisition price “just over $40 a share,” a deal valued at $9.4 billion.  If consummated, the marriage would create a grocery chain with more than 250,000 employees and 2,400 stores.  The combination would allow the new firm to save money by uniting...