Kroger, Albertsons to sell 166 more stores with $25B merger in limbo

Core Viewpoint - Kroger and Albertsons are increasing the number of grocery stores sold to C&S Wholesale Grocers to address federal regulators' concerns regarding their proposed $25 billion merger, now involving the sale of an additional 166 stores [1][2]. Group 1: Updated Divestiture Agreement - The updated divestiture agreement will see C&S pay approximately $2.9 billion in cash for the stores, an increase from the original $1.9 billion payout [1]. - The new agreement will result in C&S acquiring a total of 579 stores, along with access to the Albertsons Signature and O Organics private label brands [1]. Group 2: Regulatory and Employment Commitments - Kroger's CEO emphasized that the updated plan ensures no store closures due to the merger, all frontline associates will remain employed, and existing collective bargaining agreements will continue [2][4]. - The agreement aims to maintain industry-leading healthcare and pension benefits for associates, alongside bargained-for wages [4]. Group 3: C&S Wholesale Grocers' Perspective - C&S Wholesale Grocers' CEO expressed confidence that the expanded divestiture package will provide the necessary resources for the stores to continue serving their communities effectively [4]. - C&S looks forward to integrating storied banners, quality private label brands, and experienced retail associates into its operations [4]. Group 4: Legal and Market Concerns - The Federal Trade Commission (FTC) and eight states have filed a lawsuit to block the merger, citing concerns over potential price increases, store closures, and job losses in the grocery market [6]. - Union representatives have raised concerns about C&S's ability to maintain store operations without adequate IT infrastructure and customer loyalty [8].