American supermarket chains Safeway and Albertons are to merge under Albertsons' parent company Cerberus.
Under the agreement, Albertsons' chief executive, Bob Miller, will become chairman, while Safeway chief executive Robert Edwards will be chief executive of the new company.

Believed to be worth more than $9bn, the merger will create a new company with a diversified network of more than 2,400 branches, 27 distribution facilities and over 250,000 staff. No store closures are expected as a result of the merger.

Bob Miller said: “This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country. It also brings together two great organisations with talented management teams.

Robert Edwards, added: 'Safeway has been focused on better meeting shoppers’ diverse needs through local, relevant assortment, an improved price/value proposition and a great shopping experience that has driven improved sales trends. We are excited about continuing this momentum as a combined organisation.'

The deal is expected to close in the fourth quarter, subject to regulatory and shareholder approval.