Go-ahead for Sainsbury’s US disposal
Albertsons cleared to acquire Shaw’s
The US antitrust authorities have approved the sale of the Sainsbury’s-owned Shaw’s Supermarkets business to US grocery giant Albertsons.
The US regulatory authorities have ended their investigation into the $2,475m deal without taking any action or placing any conditions on the sale.
Sainsbury’s will bank $2,107m in cash from the deal, with Albertson’s also taking on $368m in store leases. The 202-store Shaw’s chain is the number two supermarket business in the New England area. It has been owned by Sainsbury’s for 20 years.
The UK supermarket operator is selling the business in order to focus on its core UK operation, which has seen market share slip, without also trying to compete in the increasingly cut-throat US grocery sector. Some of the proceeds will be returned to shareholders, with the rest reinvested in the UK stores, including acquisitions.
[img r]Albertsons.jpg[/img]The addition of Shaw’s will see Albertsons increase its US presence to over 2,500 stores. The deal is expected to be completed by the summer.
