Kroger and Albertsons Beef Up Divestiture Deals to Take on FTC
April 25, 2024, 3:36 pm
Kroger and Albertsons are ramping up their divestiture efforts by selling 166 more store locations to C&S Wholesale Grocers in a bid to strengthen their defense against the FTC. The initial agreement to sell 413 stores has now been increased to 579 stores, including banners like Haggen, QFC, Mariano's, and Carrs. C&S will also license the Albertsons and Safeway banners in certain states, while Kroger will re-banner stores under those names in other states. The grocers are making unprecedented divestiture concessions to address regulatory concerns and ensure the successful operation of the divested stores by C&S. The move reflects their concerns about the deal's chances in court.
Title: Kroger and Albertsons to Sell 166 More Stores Seeking Approval of $25 Billion Merger
Description: Kroger and Albertsons are expanding their planned sale of grocery stores to C&S Wholesale Grocers by offloading an additional 166 locations, bringing the total to 579 stores. The companies are working to address regulators' concerns about the proposed $25 billion merger, which could lead to higher prices, store closures, and job losses. C&S will pay Kroger $2.9 billion in cash for the stores, up from the initial $1.9 billion payout. The FTC and eight states have sued to block the deal, citing potential price increases for consumers. The FTC has been cautious about accepting divestitures as a solution, setting an August hearing date for a preliminary injunction. Analysts and union representatives have raised concerns about C&S's operational experience and potential impact on employees, while legal advisers believe the increased divestiture will provide C&S with the necessary resources to run the business effectively.
Title: Kroger and Albertsons to Sell 166 More Grocery Stores to Appease FTC, Get Merger Approved
Description: Kroger and Albertsons are selling an additional 166 grocery stores to C&S Wholesale Grocers to address FTC concerns and secure approval for their estimated $25 billion merger. The companies are facing scrutiny over potential price hikes and job losses, prompting them to increase the number of stores being divested. The FTC has sued to block the deal, with a court hearing scheduled for August. Analysts and union representatives have expressed concerns about C&S's ability to operate the stores effectively, while legal advisers believe the increased divestiture will provide the necessary resources for a successful transition. Kroger's shares rose by 1 percent following the announcement, signaling investor confidence in the deal's progress.
Title: Kroger and Albertsons to Sell 166 More Stores Seeking Approval of $25 Billion Merger
Description: Kroger and Albertsons are expanding their planned sale of grocery stores to C&S Wholesale Grocers by offloading an additional 166 locations, bringing the total to 579 stores. The companies are working to address regulators' concerns about the proposed $25 billion merger, which could lead to higher prices, store closures, and job losses. C&S will pay Kroger $2.9 billion in cash for the stores, up from the initial $1.9 billion payout. The FTC and eight states have sued to block the deal, citing potential price increases for consumers. The FTC has been cautious about accepting divestitures as a solution, setting an August hearing date for a preliminary injunction. Analysts and union representatives have raised concerns about C&S's operational experience and potential impact on employees, while legal advisers believe the increased divestiture will provide C&S with the necessary resources to run the business effectively.
Title: Kroger and Albertsons to Sell 166 More Grocery Stores to Appease FTC, Get Merger Approved
Description: Kroger and Albertsons are selling an additional 166 grocery stores to C&S Wholesale Grocers to address FTC concerns and secure approval for their estimated $25 billion merger. The companies are facing scrutiny over potential price hikes and job losses, prompting them to increase the number of stores being divested. The FTC has sued to block the deal, with a court hearing scheduled for August. Analysts and union representatives have expressed concerns about C&S's ability to operate the stores effectively, while legal advisers believe the increased divestiture will provide the necessary resources for a successful transition. Kroger's shares rose by 1 percent following the announcement, signaling investor confidence in the deal's progress.