Kroger and Albertsons Cos have amended the asset sale agreement with C&S Wholesale Grocers to include an extra 166 stores in a bid to get regulatory approval for their proposed $25 billion (€23.5 billion) merger.
C&S will pay Kroger an all-cash consideration of about $2.9 billion, up from the previous payout of $1.9 billion (€1.8 billion).
With the inclusion of the additional 166 stores, the updated divestiture package will see a total of 579 stores being sold and operated by the new owner, C&S.
Kroger and Albertsons have been looking to offload stores to address regulatory concerns that have risen since they first announced the merger in October 2022.
In February, the US Federal Trade Commission and eight states sued to block the deal, saying it would boost grocery prices for millions of Americans.
Under the amended agreement, Kroger will also sell the Haggen banner to C&S.
'No Stores Will Close'
Rodney McMullen, chairperson and CEO of Kroger stated, "Importantly, the updated divestiture 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. Our proposed merger with Albertsons will bring lower prices and more choices to more customers and secure the long-term future of unionised grocery jobs."
"We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come," added Eric Winn, CEO of C&S.
News by Reuters, additional reporting by ESM.
