Supervalu Group Gets Albertson's

An investing group led by

Supervalu

(SVU)

agreed to acquire Idaho-based food and drugstore operator

Albertson's

(ABS)

for $26.29 a share in cash and stock.

The agreement came as part of a chain of deals valued by the companies at more than $17 billion. On Friday, the Supervalu group -- which also includes hedge fund Cerberus Capital and drugstore chain

CVS

(CVS) - Get Report

-- renewed its bid for Albertson's, a month after an earlier reported $26-a-share effort foundered on antitrust concerns.

Albertsons' shareholders will receive $20.35 in cash and a fixed exchange ratio of 0.182 shares of Supervalu stock for each Albertsons' share, on a fully diluted basis.

On Monday, the sides said that Supervalu will pay $12.4 billion in cash and stock for the operations of Acme Markets, Bristol Farms, Jewel-Osco, Shaw's Supermarkets, Star Markets, and Albertson's banner stores in the Intermountain, Northwest and Southern California regions. Supervalu will also acquire the related in-store pharmacies under the Osco and Sav-on banners. As a result of the acquisition, which totals 1,124 stores, the new Supervalu will become the nation's second-largest supermarket chain. CVS will acquire 700 stand-alone Sav-On and Osco drugstores in southern California, the Southwest and Midwest, as well as the distribution center in La Habra, Calif. CVS will also acquire Albertson's ownership interests in the drugstore real estate. The Cerberus-led group will acquire stores in Dallas/Fort Worth, Northern California, Florida, the Rocky Mountains and the Southwest.