Albertsons and Kroger have announced plans to sell between 250 and 300 stores in an effort to alleviate antitrust concerns relating to Kroger’s proposed $24.6 billion acquisition of Albertsons, reports Reuters.
Combined, the stores the two companies sell may be worth more than $1 billion, according to anonymous sources. If they cannot find a buyer, the companies had originally planned to create a spin-off chain with the divested locations.
The decision comes at a time when the Federal Trade Commission is experiencing pressure from lawmakers and advocacy groups to block the acquisition because of its potential to lead to even higher grocery store prices.
Prospective grocers include Ahold Delhaize, which operates Stop & Shop, Giant, Food Lion, and Hannaford.
The FTC is skeptical about the divestitures because of the failure of the move in a previous merger between Albertsons and Safeway, cites FTC chair Lina Khan. In 2014, after selling 146 Safeway stores to Haggen, the latter grocer filed for bankruptcy a few months later, blaming Albertsons for its situation. Full Story
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