(CTN News) – To clinch regulatory approval for their $24.6 billion merger deal, Kroger and Albertsons could be close to selling hundreds of stores to C&S Wholesale Grocers, as a means of securing their $24.6 billion merger deal, according to reports.
There has been speculation that both Kroger and Albertsons will have to divest stores in order to satisfy antitrust regulators in order for the merger to proceed. In their initial proposal,
Kroger and Albertsons stated that they were looking to sell 100 to 375 stores; however,
They have since disclosed that they will limit the number of divested stores to 650.
Neither the number of stores involved in the C&S deal nor any other details about the deal have been revealed. There is a possibility that the acquisition will take place within the next few days,
The company lost one of its largest grocery customers, Ahold Delhaize, when the company began self-distribution in 2019 as a result of the transition to self-distribution. There is a possibility that C&S could offset some of those losses through acquisitions,
With over 7,500 grocery stores across the country receiving food supplies from C&S, a Keene, N.H.-based company that generated $30 billion in revenue in 2022, the company supplies food to over 7,500 retailers.
Additionally, the wholesaler owns a small number of grocery stores, including 11 Grand Union stores in New York and Vermont, as well as several Piggly Wiggly stores in Wisconsin and the Southeast of the country.
As of the time of publication of this article, neither Kroger, Albertsons, nor C&S Wholesale Grocers had responded to a request for comment.
It continues to be a difficult process to complete the merger between Kroger and Albertsons. Several secretaries of state wrote to Federal Trade Commission chair Lina Kahn in mid-August, urging the agency to stop the merger as soon as possible.
In a statement released by the group, it said that the deal would give Kroger and Albertsons control over a quarter of the U.S. food retail market.
The merger has also been opposed by labor unions and other groups that have come out as opposed to it.
Several aspects of the proposed merger have been investigated by the Federal Trade Commission, which is looking into whether the proposed merger will put pressure on suppliers, which in turn could lead to lower margins for smaller grocery stores.