In an effort to appease regulators who have sued to block its proposed $24.6 billion merger with Albertsons, Kroger announced yesterday that it has updated its plan to divest hundreds of stores to C&S Wholesale Grocers. Kroger’s new plan calls for the divestiture of 579 stores, which is 166 more than originally proposed.
Company Chairman and CEO Rodney McMullen said in a press release that the new divestiture package addresses regulators’ concerns and “will further ensure that C&S can successfully operate the divested stores as they are operated today.”
In February, the FTC and attorneys general from eight states and the District of Columbia sued to block the deal over antitrust concerns. The lawsuit cited the obstacles C&S would potentially face in taking on hundreds of stores. C&S currently operates only 23 supermarkets.
McMullin also said Monday that the updated 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.”
The additional 166 stores to be divested are in 18 states and Washington D.C., and are entirely made up of Kroger and Albertsons stores with the exception of nine Harris Teeter supermarkets.
C&S will pay $2.9 billion for the stores and brands, according to Kroger.
