In an effort to satisfy federal regulators, supermarket chains Kroger and Albertsons announced they will sell more of their stores in an effort to move forward with a proposed merger that was announced in October 2022.
The companies plan to sell 579 Kroger and Albertsons stores in markets where they overlap to C&S Wholesale Grocers, for $2.9 billion.
It’s unclear if the new plan will satisfy regulators. In February, the U.S. Federal Trade Commission sued to block the $24.6 billion merger citing lack of competition would lead to higher grocery prices and lower wages for workers.
Under the updated plan, Kroger would sell its Haggen banner to C&S. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores.
According to Kroger and Albertsons, the merger is necessary to better compete with Walmart, Amazon and other rivals.