A&P, Pathmark merger creates $9.4 billion grocery store chain

By Lisa Kerner

Charlotte, N.C., Dec. 3 - The Great Atlantic & Pacific Tea Co., Inc. completed its $1.4 billion acquisition of Pathmark Stores, Inc.

Pathmark shareholders received $9.00 in cash and 0.12963 shares of A&P stock for each Pathmark share, a company news release stated. Shareholders of both companies approved the merger on Nov. 9.

The merger forms a chain of some 450 stores with leading market share in the New York metropolitan area as well as significantly increased market share in greater Philadelphia and Baltimore.

"The merger of these iconic brands will transform A&P's financial performance, efficiency and competitiveness, create substantial value for shareholders, and offer enhanced security and opportunity for associates," A&P executive chairman Christian Haub said in the release.

"Our goal now is to efficiently integrate the businesses based on the comprehensive plan developed over the last eight months under the direction of senior management and outside experts," Haub added.

Pathmark is a 141-store supermarket chain based in Carteret, N.J. A&P is based in Montvale, N.J., and operates 410 supermarkets in nine states and the District of Columbia.

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