US Grocery Giants Kroger & Albertsons Sold Over 400 Stores to Clear Merger Plan Ahead

Kroger and Albertsons, two of the largest grocery chains in the United States, have agreed to sell more than 400 stores and other assets to C&S Wholesale Grocers in order to clear a path for their merger.

The agreement: The deal, which is worth about $1.9 billion, includes the sale of 413 stores, and includes the QFC, Mariano's, and Carrs brand names. Kroger will also divest the Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals, and Waterfront Bistro private label brands. In addition, C&S will get eight distribution centers and two offices.

All fuel centers and pharmacies associated with the divested stores will remain with the stores and continue to operate.

The deal is still subject to regulatory approval, but it is expected to close early next year.

The players: C&S is a supplier to independent grocery stores, supplying more than 7,500 independent supermarkets, retail chain stores, and military bases. It currently runs Grand Union grocery stores and Piggly Wiggly franchise and corporate-owned stores in the Midwest and Carolinas.

C&S has prior experience with divestitures related to mergers and has successfully transitioned union employees and their associated collective bargaining agreements in the past.

The sale of the stores to C&S is a significant step forward for the Kroger-Albertsons merger. The merger is expected to create a grocery giant with over 2,800 stores and $135 billion in annual sales.

Concerns raised: The merger is also likely to face scrutiny from antitrust regulators, who are worried about the growing concentration of power in the grocery industry. However, Kroger and Albertsons have argued that the merger will be beneficial for consumers, as it will allow them to offer lower prices and better selection.

The outcome: The sale of the stores to C&S is a win-win for both companies. It allows Kroger and Albertsons to move forward with their merger, while also ensuring that the divested stores will continue to operate under the ownership of a strong and experienced company.