US: No fresh bidders for Safeway in "go shop" period
Albertsons, Safeway merger expected to close in Q4
US supermarket group Safeway has said no rival bidders have come forward during the "go shop" period following the announcement of its agreement to be acquired by Albertson's owner AB Acquisition.
Under the merger agreement, Safeway was permitted to solicit competing offers during a 21-day period, which ended yesterday (27 March).
"None of the parties contacted by Safeway during the "go-shop" period notified Safeway by the deadline that they would be interested in pursuing an alternative transaction under the merger agreement," the company said in a statement today.
The transaction is now expected to close in the fourth quarter of 2014.
Safeway Inc. Announces End of "Go Shop" Period
PLEASANTON, CA -- (Marketwired) -- 03/28/14 -- Safeway Inc. (NYSE: SWY), ("Safeway"), today announced the expiration of the 21-day "go-shop" period pursuant to the terms of the previously announced definitive merger agreement under which AB Acquisition LLC has agreed to acquire all outstanding shares ofSafeway.
Under the definitive merger agreement, Safeway and its representatives were permitted to solicit and engage in negotiations with respect to alternative acquisition proposals during the 21-day period that ended at 11:59 p.m. (Eastern Time) on March 27, 2014 (the "go-shop" period). None of the parties contacted by Safewayduring the "go-shop" period notified Safeway by the deadline that they would be interested in pursuing an alternative transaction under the merger agreement.
Starting at 12:00 a.m. (Eastern Time) on March 28, 2014, Safeway became subject to customary "no shop" provisions that limit its ability to solicit alternative acquisition proposals from third parties or to provide confidential information to third parties, subject to customary "fiduciary out" provisions.
The parties to the merger agreement currently expect to complete the merger in the fourth quarter of 2014 following the satisfaction of customary closing conditions, including approval of the merger by the holders of a majority of the outstanding shares of Safeway common stock and regulatory approvals including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Original source: Safeway
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