May 14, 2015, 9:47 PM
- Consolidation in the grocery industry could pick up even more, observes Supermarket News.
- A large merger between Albertsons and Safeway (NYSE:SWY) has been followed by talks between Delhaize (NYSE:DEG) and Ahold (OTCQX:AHONY).
- The increased push by Wal-Mart and Target in the sector has added pressure to leverage store growth through M&A.
- "There is mounting pressure in the supermarket industry to consolidate operations to drive better purchasing power and leverage distribution and technology platforms," notes Wolfe Research.
- Kroger (NYSE:KR) is seen as a likely candidate to look for a chain to acquire.
- Previously: Ahold, Delhaize confirm merger talks (May 12)
- Grocery stocks: RNDY, SVU, VLGEA, WFM, CASY, IMKTA, OTCPK:PUSH, TFM, SFM, WMK.
May 11, 2015, 10:52 AM
- Delhaize (NYSE:DEG) is up 13.3% after reports on a merger with Ahold (OTCQX:AHONY +3.8%) drove up shares listed in Europe earlier today.
- The talk of industry consolidation has some other U.S. grocery stocks ahead of market averages as well.
- Grocery gainers: Kroger (NYSE:KR) +1.0%, Whole Foods Market (NASDAQ:WFM) +1.2%, Roundy's (NYSE:RNDY) +1.0%, Supervalu (NYSE:SVU) +1.0%, Fairway Group (NASDAQ:FWM) +0.9%, Ingles Markets (NASDAQ:IMKTA) +9.8% with earnings also a factor.
- Previously: Ahold, Delhaize surge on merger reports
Nov. 22, 2013, 6:15 PM
- Supervalu (SVU +7.2%) discloses its CEO, CFO, and several other execs will receive major severance benefits in the event they lose their jobs following a change of control. The benefits include sizable lump sump cash payments, as well as unpaid bonus money. (8-K)
- The disclosure has raised investor hopes the debt-laden supermarket chain will find a suitor.
Jan. 10, 2013, 9:11 AM
The Supervalu (SVU) deal with Cerberus will involve selling five different brands - including Albertson's, Jewel-Osco, and Shaws - for a sale price of $3.3B. In addition, Cerberus will lead a consortium that will make a tender offer for up to 30% of the company at $4 per share. Supervalu shares have fluttered around wildly in premarket trading, but now stand up 21.1% to $3.65 with more clarity on the terms of the deal.| Jan. 10, 2013, 9:11 AM
Nov. 29, 2012, 3:48 PM
Nov. 2, 2012, 4:42 PM
Supervalu (SVU -2.4%) shares spiked just before the close on speculation that Cerberus Capital is in talks to buy all shares in the grocery chain to merge its operations with Albertson's stores. SVU had previously announced a review of strategic alternatives and it is in active dialogue with several parties after receiving a number of indications of interest.| Nov. 2, 2012, 4:42 PM
Oct. 30, 2012, 5:45 AM
The WSJ firms up speculation that Cerberus is interested acquiring Supervalu (SVU) saying that the P-E firm is working with real-estate firms on a $5B+ bid for the struggling retailer, whose liabilities are $6B. A proposal deal would include $800M-$900M to take Supervalu private, well above its market cap of $643M. Cerberus and its partners, which include Kimco Realty (KIM), hope to reprise the turnaround success they achieved with Supervalu peer Albertsons.| Oct. 30, 2012, 5:45 AM
Oct. 2, 2012, 6:25 PM
Billionaire Ronald Burkle and P-E firms KKR and TPG are interested in Supervalu (SVU), Bloomberg reports, but are only thinking of buying parts of the hard-luck grocery chain rather than the whole. Supervalu still wants someone to buy the company in full (previous), and is said to have extended its offer deadline beyond a prior Oct. 15. One source claims Supervalu's struggles have "stalled progress on any kind of offer." Shares +2.6% AH. (store closings)| Oct. 2, 2012, 6:25 PM
Aug. 23, 2012, 5:03 PMSupervalu's (SVU) advisers are asking potential buyers to bid for the entire business, even as several suitors have inquired about individual parts of the grocery company, Bloomberg reports. Cerberus Capital is said to be looking at a possible deal involving the Albertsons unit, among other deals. SVU +6.1% AH. | Aug. 23, 2012, 5:03 PM
Jul. 16, 2012, 3:31 PM
Supervalu (SVU +9.2%) extends gains following a WSJ article that the company expects to begin sending out financial information in the coming days to prospective buyers, including buyout firms and other supermarket operators and distributors. SVU said last week it had hired bankers to look at selling either part or all of itself. (earlier)| Jul. 16, 2012, 3:31 PM | 6 Comments
Nov. 9, 2011, 2:03 PM
Already having a big year, dealmaking in the grocery business is set to jump even more as regional players seek to size up. One firm on the radar screen is Supervalu (SVU), primed for acquisition or break-up as it tries to shed debt from its $12.4B purchase of Albertsons in 2006.| Nov. 9, 2011, 2:03 PM