The grocery company Albertson’s, owner of Safeway and several other supermarket chains, plans to buy a majority stake in Rite Aid. The combined company will have 4,900 locations across 38 states and the District of Columbia. Company executives cited Amazon’s purchase of Whole Foods as one reason for the deal.
After the acquisition, the combined company will have a market capitalization of about $24 billion. Albertson’s has about a 4.5 percent market share in grocery retail. The deal, which will need to be approved by regulators, comes as grocery retailers worry about the possible outcomes of Amazon’s entrance into the sector. Executives said that the acquisition will allow Rite Aid to sell more food and expand its e-commerce business.
Walgreens was previously in talks to buy Rite Aid, but the Federal Trade Commission blocked a full merger. Instead, Walgreens is purchasing just around 1,900 Rite Aid locations.