Seeking Alpha

Cerberus leads race for Safeway

  • Private-equity firm Cerberus is the leading bidder for Safeway (SWY), Bloomberg reports, adding to a Reuters article that the two are close to a deal.
  • The companies are still negotiating over price; Safeway's market cap is $9.09B.
  • The grocery chain said last week that it's in discussions to sell itself.
  • Other P-E firms are interested in buying Safeway in parts, although the company prefers to be sold in its entirety.
  • Cerberus is willing to bid higher than other potential suitors, because it believes it can generate cost savings via a tie-up between Safeway and Albertsons, which the P-E company already owns.
Comments (1)
  • What would be the takeout price ? I think it would be in mid 40s.
    24 Feb, 04:01 PM Reply Like
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