Hospital operator HCA Holdings Inc. (HCA) will replace Safeway
Inc. (SWY) in the S&P 500 after the close of trading Monday,
S&P Dow Jones Indices said Friday.
AB Acquisition LLC agreed in March to buy Safeway for $9.4
billion, a deal that would significantly boost its size, setting it
up as a powerful rival to Kroger Co.
Company officials have said they expect the deal, subject to
approval from the Federal Trade Commission, to close this
month.
Inclusion in the index typically boosts the stock as
index-tracking funds that follow the S&P 500 buy its
shares.
HCA, which has a market capitalization of $29.6 billion, has
reported higher profit in recent quarters, boosted by a higher
admissions and the U.S. healthcare overhaul.
HCA shares rose 3% to $71 in recent after-hours trading.
Through Friday's closing, the company's stock, which set a
52-week-high on Jan. 12 at $76.18, were up nearly 38% over the past
12 months.
Write to Maria Armental at maria.armental@wsj.com
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