Albertsons parent company Cerberus Capital Management is buying Safeway in a deal estimated at $9 billion through AB Acquisition LLC. The Board of Directors of Safeway approved the deal unanimously. As a result of the merger, plus other actions to be taken by the Safeway Board of Directors, including the separate sales of certain other primarily non-core assets, and the distribution of Blackhawk shares, Safeway shareholders are expected to receive total value estimated at $40 per share.

“This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country,” said Albertsons CEO Bob Miller. “It also brings together two great organizations with talented management teams. Robert Edwards and his team have done an outstanding job in positioning Safeway’s core business for success, by investing in its stores and creating innovative strategic marketing programs that contribute to shareholder value. Working together will enable us to create cost savings that translate into price reductions for our customers. Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.”

The merger will create a network that includes more than 2,400 stores, 27 distribution facilities and 20 manufacturing plants with more than 250,000 employees. No store closures are expected as a result of the transaction. Mr. Miller will become executive chairman. Robert Edwards, Safeway’s current president and CEO, will become president and CEO of the combined company. The merger is expected to close in the fourth quarter of 2014 following the satisfaction of customary conditions and regulatory approvals.