Grocery Giants' Merger Deal Sweetened with Expanded Store Divestment

Grocery Giants' Merger Deal Sweetened with Expanded Store Divestment
Grocery Giants' Merger Deal Sweetened with Expanded Store Divestment

Under federal scrutiny, supermarket chains Kroger and Albertsons announced an updated divestiture plan, proposing to sell 35 Kroger and Albertsons-owned stores in Illinois. This is an increase from the 14 Kroger stores initially planned for divestiture in September.

The divestiture is part of the companies' efforts to address concerns raised by regulators over their planned merger. The Federal Trade Commission has sued to block the merger, citing potential competition concerns and the inadequacy of the initial divestiture plan.

The updated plan includes the sale of a total of 579 Kroger and Albertsons stores in overlapping markets to C&S Wholesale Grocers for $2.9 billion. C&S would acquire the Haggen banner from Kroger and license the Albertsons banner in California and Wyoming, and the Safeway banner in Arizona and Colorado. The company would also gain access to private-label brands and is expected to keep all stores open and honor labor agreements.

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