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BOISE -- In a huge move for the company and the region, Cerebus Capital Management, which controls Idaho-based Albertsons, struck a deal to buy Safeway. The deal is valued at around $9 billion.

The merger will end with Albertsons owning more than 2,400 stores and employing more than 250,000 people. On a number of levels, from jobs to customer prices, local analysts and financial experts say this Albertsons deal looks good for Boise.

Across the United States, the grocery industry is intensely competitive, with companies vying for buying power to entice customers, according to Jim Scott, founder and CEO of Eagle Wealth Management.

The trend in the industry is to lower and lower prices. And it's the lower price formula that's winning, and the majors need to adjust to lower prices one way or the other, Scott said. They have to get costs out of the equation in order to get their prices lower, and therefore, it's more cost effective for two companies to own one warehouse than two companies to each own one warehouse.

With competition from big box stores and even online retailers like Amazon, Scott says it makes sense that companies would merge to gain more buying power.

The grocery or supermarket industry has always been intensely competitive, but it's never been more intensely competitive than it is now, with non-traditional retailers like Costco, and Walmart, and Sam's Club coming into the industry. Really great regionals like Winco have come in and are doing extremely well, and costs are just under pressure, Scott said. The majors like Safeway and Albertsons need to consolidate together in order to try to achieve economies of scale that their size would provide for them, in terms of manufacturing, warehousing, distribution and management overhead.

After the deal was announced Thursday, Albertsons' CEO Bob Miller said of the deal: Working together will enable us to create cost savings that translate into price reductions for our customers.

For Boise, KTVB's financial analyst Dave Petso says the deal could bring back jobs to Boise

We all remember the days when Heinz and all the other vendors, Procter and Gamble, had offices here. They're going to have offices again here, and this is going to bring in some really good secondary jobs as well as the headquarters staffing up to be able to handle another 1,000 plus stores. So this is absolutely huge for the local economy, Petso said.

According to information from Albertsons and Safeway, no store closures are expected as a result of the deal.

There are some changes on the top: Safeway's current president and CEO Robert Edwards will keep that title over the new combined company. Albertsons CEO Bob Miller will become Executive Chairman of the company.

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