Albertsons and Kroger Agree to Sell More Stores to Get Merger Approval

Core Insights - Albertsons and Kroger are divesting more locations to secure regulatory approval for Kroger's $24.6 billion acquisition of Albertsons [1] - The revised divestiture agreement with C&S Wholesale Grocers includes the sale of 160 additional locations, bringing the total to 579 [1] - The Federal Trade Commission (FTC) previously deemed the initial divestiture plan inadequate [1] Financial Performance - Albertsons reported fourth-quarter adjusted earnings per share (EPS) of $0.54, surpassing estimates [1] - Revenue for Albertsons increased by 0.4% to $18.34 billion, which fell short of forecasts [1] - CEO Vivek Sankaran indicated that the company faces ongoing challenges, including rising associate wages, prior year food inflation, and declining COVID-related income [1] Market Reaction - Albertsons shares declined by 0.4% to $20.26, with a nearly 12% drop year-to-date [1] - Kroger shares remained stable but have increased by approximately 24% in 2024 [1]