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Two grocery stores will merge, preventing a monopoly in Colorado


For some Colorado companies, merging can be highly advantageous. Not only can it help to further their business goals, it can also increase the value of the company's stock. However, there are many legal complexities involved in mergers and acquisitions. The effect it will have on a company's finances is not always certain, but by understanding the various legal nuances involved companies can make informed decisions.

According to reports, two grocery store chains -- two of the largest in the U.S. -- are set to merge. The merger will potentially prevent a grocery store chain from becoming a monopoly in Colorado. What's more, it will produce a network of 2,400 stores, 20 manufacturing plants with more than 250,000 employees, and 27 distribution facilities.

The chief executive officer of one of the companies believes the grocery store's prices will likely fall as a result of the merger. Working together will potentially allow them to create even more attractive price points for their customers. It may also help them better compete with some of the larger chains like Wal-Mart or Costco. The deal is valued at more than $9 billion, according to reports. Shareholders will potentially receive $40 a share.

Mergers can be lucrative, but they can also be highly complex. Diligently making sure the process is handled in a legally sound way can help businesses avoid potential problems. Oftentimes, business owners do not have the legal knowledge necessary to ensure the process is done legally and diligently. This is why business and commercial law attorneys are available to help assist business owners in properly executing a merger.

Source: FOX 31, "Albertsons to buy Safeway, preventing possible Colo. grocery monopoly," March 7, 2014

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