HCA to Replace Safeway in S&P 500 Index

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 [e-mail]

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