In Minnesota, the Star Tribune reports that Supervalu’s shareholders have approved a new corporate reorganization “that is designed to make it easier to sell its retail operations.”
The move comes just weeks after Supervalu’s decision to sell itself to United Natural Foods for $2.9 billion, which followed a period during which it was under investor pressure to sell the company.”
The Star Tribune writes that “Supervalu earlier this spring told shareholders it wanted to reshape itself into a holding company structure that would facilitate an easier disposition of its retail stores. After several previous sales of regional grocery chains over the past few years, Supervalu's retail holdings now chiefly consist of Cub Foods in Minnesota, Hornbacher's in North Dakota and Minnesota, and Shoppers Food and Pharmacy in several mid-Atlantic states.
“United Natural Foods executives said they would sell the Supervalu retail chains after closing the acquisition. But Supervalu is allowed to sell some or all of them first, if any such deals meet conditions the two firms agreed upon. Either way, the fate of Cub Foods, the largest grocery chain in the Twin Cities with a 25 percent market share, and Supervalu's other retail units is up in the air.”
The move comes just weeks after Supervalu’s decision to sell itself to United Natural Foods for $2.9 billion, which followed a period during which it was under investor pressure to sell the company.”
The Star Tribune writes that “Supervalu earlier this spring told shareholders it wanted to reshape itself into a holding company structure that would facilitate an easier disposition of its retail stores. After several previous sales of regional grocery chains over the past few years, Supervalu's retail holdings now chiefly consist of Cub Foods in Minnesota, Hornbacher's in North Dakota and Minnesota, and Shoppers Food and Pharmacy in several mid-Atlantic states.
“United Natural Foods executives said they would sell the Supervalu retail chains after closing the acquisition. But Supervalu is allowed to sell some or all of them first, if any such deals meet conditions the two firms agreed upon. Either way, the fate of Cub Foods, the largest grocery chain in the Twin Cities with a 25 percent market share, and Supervalu's other retail units is up in the air.”
- KC's View:
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It will be interesting to see who picks up these retail properties, because certain companies will cause markets to be reshaped to some extent by players who are more aggressive in their approaches.
