Kroger and Albertsons said Monday the two companies are increasing the number of grocery stores they sell to C&S Wholesale Grocers to address federal regulators' concerns about the impact of their proposed $25 billion merger on competition. An additional 166 Kroger and Albertsons stores will be sold to C&S as part of an updated divestiture agreement between the three companies.
Importantly, the updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages," McMullen added.
district court in Oregon will hold a hearing in August on the FTC's request for a preliminary injunction to block the deal. Tom Geiger, spokesperson for UFCW 3000, which represents Kroger and Albertsons unionized employees in Washington, Oregon and Idaho, said that members are concerned that C&S might resort to selling the real estate of stores if it lacks the necessary IT infrastructure, customer loyalty and manufacturing capabilities.