Kroger/Albertsons Talks With Government Regulators Continue
The closing date for the Kroger/Albertsons merger has been pushed back to the first half or Kroger’s 2024 fiscal year as negotiations with federal and state regulators continue.
In a joint statement from Kroger, Albertsons and C&S Wholesale Grocers, the companies said they remain in active and ongoing dialogue with the Federal Trade Commission and individual state attorneys general regarding the proposed merger and divestiture plans.
“We believe our merger with Albertsons and the comprehensive divestiture to C&S will result in the best outcomes for customers, associates and our communities,” the statement said. “In light of our continuing dialogue with the regulators, we are updating our anticipated closure timeline. We currently anticipate that the closing will occur in the first half of Kroger's fiscal 2024. While this is longer than we originally thought, we knew it was a possibility and our merger agreement and divestiture plan accounted for such potential timing.”
The initial announcement of the proposed merger between Kroger and Albertsons was announced in October of 2022. At that time, Kroger said it would acquire all outstanding shares of Albertsons in a deal valued at approximately $24.6 billion, which includes the assumption of approximately $4.7 billion of Albertsons debt.
At the time the deal went public, the two companies employed more than 710,000 associates and operated 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers.
In September of 2023, Kroger and Albertsons said they would sell more than 400 locations in 17 states and Washington, D.C., to C&S Wholesale Grocers. The deal, which is dependent on the approval of the Kroger/Albertsons merger, would also include eight distribution centers, two offices, and five private label brands.
In the statement, Kroger said it would invest $500 million to reduce prices beginning day one, as well as an incremental $1.3 billion to enhance the customer experience. The grocer also reiterated its commitment to projects union jobs and keeping all stores open. C&S has also committed to recognize the union workforce and maintain all collective bargaining agreements, and is committed to retaining frontline employees and further investing for growth.
