Tuesday, March 6, 2007
A&P will acquire its rival Pathmark in another sign of the increasing consolidation in the grocery store business. It will offer Pathmark shareholders $9 in cash and 0.12963 in stock in a friendly tender offer. The acquisition is valued at $1.3 billion, including assumption of debt. The combined business will consist of 550 stores in the northeast. See NYTimes, A.& P. to Buy Pathmark, a Rival Grocer and WSJ, Grocery Chain A&P Agrees to Buy Rival Pathmark for $677.3 Million.