Merger of Ralphs, Food 4 Less Chains Delayed Pending Shareholder OK

An expected agreement to merge Ralphs Grocery Co. with Food 4 Less Supermarkets was delayed Tuesday as the companies’ representatives continued to seek the approval of the last of six Ralphs shareholders, sources said.

The boards of directors of Ralphs and Food 4 Less Supermarkets--operator of Alpha Beta, Boys, Viva and the Food 4 Less warehouse stores--approved the $2.5-billion merger Friday, and the deal is to be finalized if shareholders agree.

Yucaipa Cos., a Los Angeles-based firm that controls Food 4 Less Supermarkets, has negotiated a deal with DeBartolo Corp., which has controlling interest in Ralphs.

Sources said five of the six Ralphs shareholders controlling 90% of the shares have approved the deal but that the sixth, Paris-based Banque Paribas, has not. However, people close to the negotiations said a final agreement was near. Besides Banque Paribas and DeBartolo Corp., the Ralphs shareholders are Toronto-based Camdev Properties, Bank of Montreal, Cincinnati-based Federated Department Stores and the affiliated Federated Stores.

The companies expect to merge their operations in November or December. Yucaipa would convert all of its Alpha Beta, Boys and Viva markets to either Ralphs or Food 4 Less warehouse stores.