Kroger, Albertsons agree to sell more stores in hopes of completing merger

C&S Wholesale Grocers will purchase around 150 more stores than it initially planned to under the deal.

Kroger and Albertsons have agreed to sell more stores in an attempt to address regulatory concerns about their proposed merger.

The companies plan to sell a total of 579 Kroger and Albertsons stores in overlapping markets to C&S Wholesale Grocers.


The big picture: Initially, Kroger and Albertsons had planned to sell 413 stores for $1.9 billion to C&S. 

  • Now the 579 stores will go for $2.9 billion. 

Driving the news: The companies face regulatory scrutiny from the U.S. Federal Trade Commission (FTC), which sued to block the $24.6 billion merger, citing concerns about reduced competition and potential impacts on grocery prices and worker wages.

  • The FTC considered the initial divestiture plan inadequate, stating that it would result in C&S acquiring unconnected stores and brands, making it difficult for them to compete with the combined Kroger and Albertsons.

Go deeper: Under the updated plan, Kroger will sell its Haggen banner to C&S, and C&S will also license the Albertsons banner in California and Wyoming, and the Safeway banner in Arizona and Colorado.

  • C&S will gain access to certain private-label brands in the stores and will keep all the stores open while honoring existing labor agreements.

What they’re saying: “We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” C&S CEO Eric Winn said in a statement.

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