Fred Meyer Acquisition Wins Approval

Fred Meyer Inc. shareholders approved the acquisition of two West Coast grocery chains in a $4.8 billion deal that will create the nation’s fourth-largest supermarket operation.

The deals are expected to close next week.

Fred Meyer, based in Portland, plans to purchase Seattle-based Quality Food Centers for $1.7 billion and Food 4 Less Holdings Inc. of Los Angeles for $3.1 billion.

Food 4 Less Holdings is the parent company of Ralphs Grocery Inc., with 264 stores, and Food 4 Less, with 80 stores.

Shareholders for QFC, which operates 145 stores, met Friday to vote on the deal. Fred Meyer shareholders gave their approval on Thursday. And Food 4 Less, which is privately held, approved it last week.

The deals give Fred Meyer and its subsidiaries 821 stores with estimated 1997 revenue of $14.9 billion.

The expanded Fred Meyer now is tied with Albertson’s as the nation’s fourth-largest supermarket chain, according to Salomon Smith Barney.

Kroger, Safeway and American Stores are the top three.