retail news in context, analysis with attitude

The Wall Street Journal reports that the deadline has passed by which any other company could file a competing offer to acquire Safeway, "moving Cerberus Capital Management LP's deal to buy the U.S. grocery chain one step closer to closing."

While Cerberus, which owns the Albertsons chain, agreed to buy Safeway for more than $9 billion earlier this month, there was a three-week period during which Safeway could entertain other offers. Now that the deadline has passed, it seems likely that the deal will close during the fourth quarter of this year.

As the Journal writes, "the deal brings together Cerberus's Albertsons chain - the fifth-largest U.S. grocery store banner by market share - with Safeway, the second-largest. It would create a food retailer with more than 2,400 stores and more than 250,000 employees."
KC's View:
At the risk of over-using a phrase I've used here before, it seems to me that as the acquisition process moves forward, there will be a lot of emphasis on finding savings and efficiencies. But IMHO, there also should be an equal emphasis on being more effective … that just cutting costs won't be enough to make this merger work.