CINCINNATI, OH - In the wake of recent developments in the proposed merger between Kroger and Albertsons Companies, the two businesses have announced that they have amended their definitive agreement with C&S Wholesale Grocers for the sale of assets. The amended package modifies and builds on the initial divestiture deal announced in September 2023.
"We have reached an agreement with C&S for an updated divestiture package that maintains Kroger's commitments to customers, associates, and communities, addresses concerns raised by regulators, and will further ensure that C&S can successfully operate the divested stores as they are operated today," said Rodney McMullen, Kroger's Chairman and Chief Executive Officer. "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. Our proposed merger with Albertsons will bring lower prices and more choices to more customers and secure the long-term future of unionized grocery jobs."
The amended divestiture package responds to concerns raised by federal and state antitrust regulators regarding the original agreement, a release stated. The enhanced divestiture package includes a modified and expanded store set and additional non-store assets to further enable C&S to operate competitively following the completion of the proposed merger.
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 today by the new owner, C&S.
Under the amended agreement, 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 following the closing of the merger. Kroger will maintain the Albertsons and Safeway banners in the remaining states.
"We are confident this expanded divestiture package will provide the stores, supporting assets, and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come," said Eric Winn, CEO of C&S. "C&S is a leader in the grocery industry, and we are excited for this expansion of our current retail business, which is a key part of our long-term growth strategy. We look forward to welcoming storied banners, quality private label brands, and a team of experienced retail associates into the C&S family. This amended agreement enables C&S's heritage of selection, value, and customer service to continue our legacy of braggingly happy customers."
To read more details of the amended divestiture, click here.
As always, keep reading AndNowUKnow for more updates on this merger.
