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Kroger, Albertsons Add 166 Stores to Merger Divestiture Package
The Kroger Co. and Albertsons Companies Inc. said Monday they have added 166 stores to the assets they will sell to C&S Wholesale Grocers, LLC in connection with their $25-billion proposed merger. The grocery giants announced the initial divestiture package in September 2023.
Now valued at $2.9 billion, the amended divestiture package responds to concerns raised by federal and state antitrust regulators regarding the original agreement, Kroger and Albertsons said. The companies believe the amended divestiture package will bolster their position in regulatory challenges to the proposed merger, including pending court proceedings.
“We have reached an agreement with C&S for an updated divestiture package that maintains Kroger’s commitments to customers, associates and communities, addresses concerns raised by regulators, and will further ensure that C&S can successfully operate the divested stores as they are operated today,” said Rodney McMullen, Kroger’s chairman and CEO.
The updated divestiture package increases the total store count to 579, with more than 120 in Washington State alone. Under C&S ownership, the stores will continue operating as they do today.
The amended agreement enables C&S to license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. In those states, Kroger will re-banner the retained Albertsons and Safeway bannered stores post-merger. Kroger will maintain the Albertsons and Safeway banners in the remaining states.
- ◦Sale/Acquisition
