Cerberus Capital Management LP’s $9 billion deal to merge Safeway Inc. with Albertsons is a bet that a larger supermarket chain can better fend off an attack on the grocery business by big-box stores and online retailers.
Buyout firms CVC Capital Partners Ltd. and Carlyle Group LP are awaiting the outcome of Wm Morrison Supermarkets Plc’s property review next week as they evaluate a bid for the U.K. grocer, said people familiar with the matter.
Safeway Inc., the second-largest U.S. grocery-store chain, agreed to be bought by Cerberus Capital Management LP’s Albertsons in a deal valued at about $9.2 billion, creating a bigger competitor to Kroger Co. and big-box rivals.
Convenience store chains Lawson Inc. and Seven & I Holdings Co. are so sure Japan’s aging farmers can’t meet demand for fresh vegetables that they’re investing in cropland and training young people to work the fields.
Tesco Plc, the U.K.’s largest retailer, will offer permanently cheaper prices on some items to replace overly complex promotions as it seeks to stem hemorrhaging sales and reverse a declining share of the market.
Real estate held by some of the U.K.’s biggest supermarket chains is attracting private-equity firms and hedge funds after a 35 percent gain over five years made the stores worth more than the companies that run them.
U.K. retailers are poised to raise more from initial public offerings in the first quarter of 2014 than in the previous five years combined as a strengthening economy whets investor appetite for the industry.
The founding family of U.K. grocer Wm Morrison Supermarkets Plc has contacted private-equity funds such as CVC Capital Partners Ltd. and Carlyle Group LP to weigh their interest in taking the retailer private, people with knowledge of the matter said.