Kroger and Albertsons to Sell Stores in Effort to Satisfy FTC, Finalize Agreement

The Federal Trade Commission (FTC) is closely monitoring Kroger’s acquisition of Albertsons and Kroger, as the two grocery store chains face challenges in getting the merger approved. In a recent development, the stores have offered a compromise to address concerns about the merger.

Kroger and Albertsons have agreed to sell an additional 166 stores to C&S Wholesale Grocers in a divestiture deal valued at $2.9 billion. This brings the total number of stores sold to C&S to 579. The move aims to ensure that no stores close, no employees lose their jobs, and no benefits change post-merger, according to Kroger’s CEO Rodney McMullen.

The proposed merger, announced in 2022 and worth $25 billion, has raised red flags at the FTC. The agency argues that the combined chain would limit competition and have negative implications for employees, customers, and food providers. The FTC, along with eight states and Washington, D.C., initially sued to block the merger in February.

Henry Liu, director of the FTC’s Bureau of Competition, expressed concerns about rising grocery prices and the potential impact on essential grocery store workers if the merger goes through. The revised divestiture deal includes selling the Haggen name to C&S and allowing C&S to operate under the Albertsons and Safeway names in certain states.

The FTC has not yet indicated how the revised deal will impact its decision on the merger. Stay tuned for updates on this ongoing saga in the grocery industry.