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Private equity firm Cerberus Capital Management plans to purchase Safeway in a $9.4 billion deal and merge it with Albertsons.
Some Safeway and Albertsons locations may be sold in order for the two supermarket chains to merge.
Combined, Albertsons and Safeway will have 455 stores in Southern California, if Albertsons owner, private equity firm Cerberus Capital Management, buys Safeway in a $9.4 billion deal.
That may cause regulatory agencies to ask that some stores be sold or divested, especially in areas where locations are very close in proximity, said Jim Lee, a USC adjunct professor and former Stater Brothers executive.
"The whole point of divestiture is to ensure a competitive marketplace in the government's eyes," Lee said.
When the stores get sold on the market, that could become a great opportunity for grocery competitors to snap up new locations, Lee added. For example, when Albertsons took over Lucky's, it sold stores in 1999 and Stater Brothers bought 43 of them.
People looking for work stand in line to apply for a job during a job fair in Miami, Fla.
California's economy lost 31,600 jobs from December to January, but the statewide unemployment rate still fell slightly to 8.1 percent, according to figures released Friday by the California Employment Development Department.
The rate for January compares with 8.3 percent the month before (December 2013), and 9.5 percent a year before in January 2013.
Across the state, five categories added jobs in January: manufacturing; financial activities; professional and business services; educational and health services; and other services. But five other categories saw job declines: construction; trade, transportation and utilities; information; leisure and hospitality; and government.
From January 2013 to January 2014, California employers added a net of 319,500 jobs, according to the California EDD.
Happy Friday! Welcome to KPCC's business blog, The Breakdown. Every weekday, we compile a list of interesting business stories in the region.
California's unemployment rate fell to 8.1 percent in January, according to the Sacramento Bee. My colleague Brian Watt (@radiobwatt) will analyze the unemployment figures for The Breakdown later today.
Safeway will be sold to private equity firm Cerberus Capital Management for $9.4 billion and merge with Albertsons, according to the San Jose Mercury News. The newspaper says the deal could mean lower prices on groceries for consumers, although one analyst was skeptical. Check back later today for analysis on what the Safeway deal means for SoCal.
Boeing said it would freeze the pension benefits of more than 68,000 non-union employees and switch them to a 401(k) plan in 2016, the Wall Street Journal reports.
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Office supply chain Staples announced today it’s closing up to 225 stores across the country in an effort to save $500 million. That news got us wondering: when the company is under that kind of pressure, couldn’t it just sell off the naming rights to Staples Center? That move, however, would actually be pretty tough.
"We actually were the first lifetime naming rights extension for a major market arena," said Michael Roth, Vice President of Communications for AEG, which owns Staples Center.
Before the arena was even built, the two companies signed a 20-year deal in 1997 reportedly worth close to $120 million. In 2009, they extended that deal into perpetuity.
"So as long as we have a sports and entertainment arena that’s located on the corner of Figueroa Street and Chick Hearn Court, the arena will be referred to as Staples Center," Roth told KPCC.
Three of the entrepreneurs vying for capital at the OASIS Summit; From left to right: Vow to be Chic's Kelsey Doorey, Bridg's Amit Jain, and Deep Forest Media's Naghi Prasad.
What company will break through as the next Google or Twitter? Hundreds of tech investors have been gathering at a conference in Santa Monica, trying to find the next smash start-up.
You could think of it as speed dating, only with hundreds of millions of dollars changing hands. Here at OASIS: The Montgomery Summit there are 145 start-ups trying to attract the attention – and the capital - of hundreds of investors.
Tech investor Jamie Montgomery is the matchmaker-in-chief, the conference organizer, and says inevitably there are some companies that walk away without a date.
“Remember high school? We were all the gangling freshman at one time,” said Montgomery.