Kroger and Albertsons Sell 413 Stores to C&S to Secure Merger Approval
Our articles may contain affiliate linksKroger and Albertsons are selling 413 stores to C&S Wholesale Grocers for $1.9 billion in cash to secure antitrust approval for their $24.6 billion merger. These stores are mainly in the Western and Midwestern regions. C&S, a major grocery wholesaler that operates Grand Union and Piggly Wiggly stores, will expand its presence through this deal.
Kroger aims to convince the Federal Trade Commission (FTC) to approve the Albertsons merger, as it competes with Walmart and Amazon. The FTC, under Chairman Lina Khan, is scrutinizing the merger's impact on grocery competition.
Frontline workers and collective bargaining agreements will remain intact. Kroger may require C&S to purchase an additional 237 stores to gain regulatory approval, potentially totaling 650 divestitures.
Kroger's shares edged up after this news, and they reported earnings of 96 cents a share for the second quarter.
The FTC could still oppose the deal, as labor unions and officials from various states have expressed concerns. Kroger plans to close the acquisition in early 2024 and is prepared to fight in court if needed.
This agreement includes stores in 17 states, distribution centers, and private-label brands. It also grants exclusive licensing rights to the Albertsons brand name in some states.
Kroger and Albertsons have approximately 5,000 stores combined, while Walmart has around 5,200 retail locations in the U.S., and Amazon is overhauling its grocery business.
C&S Wholesale Grocers is expanding into retail grocery stores through this deal and already serves thousands of supermarkets, chain stores, and institutions with a vast range of products.
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Kroger and Albertsons Sell 413 Stores to C&S Highlights:
Merger and Divestiture: Kroger and Albertsons are selling 413 stores to C&S Wholesale Grocers for $1.9 billion in cash to gain antitrust approval for their $24.6 billion merger.
Store Locations
The stores being sold are primarily located in the Western and Midwestern regions of the country.
C&S Wholesale Grocers
C&S is a significant grocery wholesaler that also operates Grand Union and Piggly Wiggly stores.
Antitrust Scrutiny
The Federal Trade Commission (FTC) is closely examining the impact of the Kroger-Albertsons merger on grocery competition, amid concerns raised by labor unions, officials from various states, and some members of Congress.
Store Divestitures
Kroger may require C&S to purchase an additional 237 stores to secure regulatory approval, potentially totaling 650 divestitures.
Financial Results
Kroger reported better-than-expected earnings of 96 cents a share for the second quarter, compared to the Wall Street projection of 90 cents.
Timeline
Kroger aims to close the Albertsons acquisition in early 2024 and is prepared to pursue legal action if necessary.
Expansion
The agreement with C&S covers stores in 17 states, distribution centers, private-label brands, and exclusive licensing rights to the Albertsons brand name in specific states.
Competitive Landscape
Kroger and Albertsons have approximately 5,000 stores combined, while Walmart and Amazon are key competitors in the grocery industry.
C&S Wholesale Grocers
C&S is expanding into retail grocery stores and currently serves thousands of supermarkets, chain stores, military bases, and institutions with a wide range of products.
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