Kroger, Albertsons — still hoping to merge — agree to sell more stores to satisfy regulators
Grocery store chains Kroger and Albertsons stated Monday they may promote extra of their shops in an effort to quell the federal authorities’s issues about their proposed merger.
The businesses now plan to promote 579 Kroger and Albertsons shops in markets the place they overlap to C&S Wholesale Grocers, a New Hampshire grocery provider and operator, for $2.9 billion. Underneath the preliminary divestiture plan, introduced in September, C&S had deliberate to buy 413 shops for $1.9 billion.
It’s unclear if the brand new plan will fulfill regulators. In February, the U.S. Federal Commerce Fee sued to dam the $24.6 billion merger between the grocery giants, saying the shortage of competitors would result in larger grocery costs and decrease wages for employees.
Kroger is the dad or mum firm of Denver-based King Soopers, Colorado’s largest grocery retailer chain, whereas Safeway is a part of Albertsons Firms Inc.
The FTC additionally stated the preliminary plan to divest 413 shops to C&S was “insufficient” and would give C&S a hodgepodge of unconnected shops and types, leaving it ill-equipped to compete with a mixed Kroger and Albertsons.
Underneath the up to date plan, Kroger would promote its Haggen banner to C&S. C&S would additionally license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would additionally get entry to some private-label manufacturers within the shops. Underneath the proposal, C&S would preserve all the shops open and honor any labor agreements.
“We’re assured this expanded divestiture package deal will present the shops, supporting property and professional operators wanted to make sure these shops proceed to efficiently serve their communities for a lot of generations to come back,” C&S CEO Eric Winn stated in an announcement.
Kroger and Albertsons introduced their deliberate merger in October 2022. The businesses say it’s obligatory to allow them to higher compete with Walmart, Amazon and different massive rivals.
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