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.

The post Kroger and Albertsons to Sell More Stores in Attempts to Get Merger Approval appeared first on theprimarymarket.com.

Kroger is willing to pay $34.10 per Albertsons’ share, which represents around a 30 percent premium on the average price this past month. The shares of Kroger dipped 5.13 percent after the news about the acquisition was made public.

The deal is reportedly expected to be closed in 2024 and would be one of the largest mergers in U.S. retail history. Kroger and Albertsons have a combined 5,000 stores and 710,000 workers while generating $200 billion in sales.

The magnitude of the deal will have a significant effect on consumers, which is why the companies are bracing for the tough challenge of getting it approved by regulators. There are fears that the combined company will have too much control over the market and will be able to drive up the prices.

In an attempt to speed up the approval process, Kroger and Albertsons’ merger will be preceded by a launch of a spinoff company. The new company will be a standalone rival in the retail market and is expected to have around 400 stores.

The post Kroger Acquires Rival Grocer Albertsons for $25 Billion appeared first on theprimarymarket.com.

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.

The post Kroger and Albertsons to Sell More Stores in Attempts to Get Merger Approval appeared first on theprimarymarket.com.

Kroger is willing to pay $34.10 per Albertsons’ share, which represents around a 30 percent premium on the average price this past month. The shares of Kroger dipped 5.13 percent after the news about the acquisition was made public.

The deal is reportedly expected to be closed in 2024 and would be one of the largest mergers in U.S. retail history. Kroger and Albertsons have a combined 5,000 stores and 710,000 workers while generating $200 billion in sales.

The magnitude of the deal will have a significant effect on consumers, which is why the companies are bracing for the tough challenge of getting it approved by regulators. There are fears that the combined company will have too much control over the market and will be able to drive up the prices.

In an attempt to speed up the approval process, Kroger and Albertsons’ merger will be preceded by a launch of a spinoff company. The new company will be a standalone rival in the retail market and is expected to have around 400 stores.

The post Kroger Acquires Rival Grocer Albertsons for $25 Billion appeared first on theprimarymarket.com.