Rumors circulating in Chicago suggest that all or most of Safeway’s Dominick’s units there will be sold by mid-February -- and that the probably buyer will be Ahold USA.
- KC's View:
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Zowie.
This rumor was relayed to us from some usually reliable sources who admitted that they weren’t sure whether it is idle speculation or just wishful thinking.
A lot of industry insiders have suggested that Ahold would be an ideal candidate to buy the company, except for the fact that its recent financial performance has been less than sterling, leading to the possibility that it might not have enough cash to complete the deal. In addition, Ahold CEO Cees van der Hoeven has said that the company will focus on its core businesses and is unlikely to make any major acquisitions in the near future.
On the other hand, it could be that Ahold might look at Dominick’s as a great opportunity to expand its US empire, and do so at a good price because Safeway’s performance there has devalued the company. You don’t get much more “core” than that.
Besides, as reported in Breaking News above, the company is expected to report a nine percent increase in its annual sales today.
It’s hard to tell. But if these rumors are spreading in the Windy City, it’s our job to keep you informed.
