Kroger and Albertsons Expand Store Divestitures to C&S Wholesale in Regulatory Push

In a bid to gain approval for their $25 billion merger, Kroger and Albertsons have increased store sales to C&S Wholesale Grocers, addressing antitrust concerns.

Kroger and Albertsons have agreed to sell 579 stores to C&S Wholesale Grocers, up from a previous commitment of 413 stores, in a revised divestiture plan valued at $2.9 billion.
The expanded divestiture aims to alleviate regulatory concerns from the FTC and several states that the merger could stifle competition and lead to higher prices.
C&S Wholesale Grocers, a New Hampshire-based company, will inherit numerous unionized workers, with promises to uphold existing collective bargaining agreements.
The deal, still facing legal challenges, includes provisions to ensure no store closures and to maintain employee benefits and jobs.
Federal and state regulators, including the FTC, have previously sued to block the merger, citing inadequate measures to preserve competition in the grocery market.