Kroger Agrees With C&S For Updated Divestiture Package To Address Concerns Raised By Regulators

(RTTNews) - The Kroger Co. (KR) and Albertsons Companies (ACI) have amended their definitive agreement with C&S Wholesale Grocers, LLC for the sale of assets in connection with their proposed merger. The amended package modifies and builds on the initial divestiture package that was announced on September 8, 2023, and responds to concerns raised by federal and state antitrust regulators. Kroger and Albertsons said they remain committed to defending the merger in court.

The updated divestiture package increases the total store count by 166 to include 579 stores that will be sold to, and continue operating as they do currently by the new owner, C&S. Under the amended agreement, Kroger will sell the Haggen banner to C&S. Also, C&S will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. In these states, Kroger will re-banner the retained Albertsons and Safeway bannered stores. Kroger will maintain the Albertsons and Safeway banners in the remaining states.

Rodney McMullen, Kroger's CEO, said: "Importantly, 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."