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Kroger and Albertsons to Sell More Stores in Attempts to Get Merger Approval

Kroger and Albertsons have announced plans to sell more stores in an attempt to get the green light for their $25 billion merger.

Kroger reached a deal to acquire Albertsons back in October 2022, but the acquisition has been met with more than a few obstacles. The main issue is the opposition of the antitrust regulators, which believe that the move will lead to higher prices. This led the U.S. Federal Trade Commission (FTC) to file a suit in order to block the merger.

For the past six months, Kroger and Albertsons tried to appease the FTC by offloading some of their stores. In September, the companies reached a deal to sell 413 stores to C&S Wholesale Grocers for $1.9 billion and will now increase that number by an additional 166 stores. This brings the number of sold stores to 579, with C&S agreeing to pay $2.9 billion for the entire package.

The two companies are also giving C&S access to Albertsons Signature and O Organics brands in order to make the transition smoother.

“The updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective-bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages,” said Kroger’s chairman and CEO Rodney McMullen in a statement.

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