Kroger And Albertsons In Talks To Sell Over 400 Stores To C&S Wholesale Grocers

Kroger and Albertsons are engaged in discussions to sell more than 400 stores to C&S Wholesale Grocers for approximately $2 billion as part of their proposed $25 billion merger, as reported by Reuters. This move is aimed at addressing antitrust concerns raised by the Federal Trade Commission.

Details:

• The stores in question are located in the Pacific Northwest, Mountain states, California, Texas, Illinois, and the East Coast.
• The potential deal is expected to be announced this week.
• Kroger and Albertsons had initially outlined the possibility of selling 100 to 375 stores when they first announced their merger proposal in 2022. They later set a cap of 650 divested stores.

Both Kroger and Albertsons declined to provide comments, while C&S Wholesale Grocers did not respond to inquiries from the USA TODAY Network regarding the potential deal.

Background:

• The proposed merger between Kroger and Albertsons is one of the largest retail takeovers in history, which would result in nearly 5,000 stores and over 700,000 employees.
• The companies have pledged not to close stores or lay off workers, though some critics remain skeptical.
• Consumer and union groups have opposed the merger, citing concerns about reduced competition, potential price increases, and negative impacts on workers.
• Regulators are currently evaluating the merger, and Kroger has expressed its intent to defend the deal in court.

Additionally, SoftBank Group Corp, a Japanese investment group, is reportedly in discussions with C&S Wholesale Grocers to provide partial financing for the deal.