business news in context, analysis with attitude

• The California State Assembly has passed legislation that is designed to return the state’s Beverage Container Recycling Fund to solvency. The same bill already has been passed by the California State Senate, and Ronald Fong, president of the California Grocers Association, said that he expects it to be signed by Gov. Arnold Schwarzenegger.

The fund ran into problems when over the past few years the state has borrowed hundreds of millions of dollars from it in order to close its budget gap. That led to the fund running try, which prevented companies doing recycling from getting reimbursed for the cans and bottles that were being redeemed.

• Nuts and snacks seller Diamond Foods announced that it will acquire potato-chips maker Kettle Foods from Lion Capital LLP for $615 million in cash. The deal is expected to close by the end of the year.

• The Berkshire Eagle reports that Big Y foods plans to open a new 45,000 square foot store - the first so-called “World Class Market” format built by Big Y that is smaller than 50,000 square feet - in Lee, Massachusetts, in summer 2011.
KC's View: