Kroger and Albertsons agreed to sell hundreds of stores to C&S Wholesale Grocers as part of a divestiture plan for their proposed $24.6 billion merger, but the deal will not include any Fred Meyer stores, reports the Oregonian. Instead, Kroger will sell stores from their QFC chain — in addition to some Albertsons Safeway banners — in an attempt to alleviate competitive concerns in the Northwest Region.
The divestiture of 413 stores to C&S Wholesale Grocers is valued at $1.9 billion.
Meanwhile, Kroger CEO Rodney McMullen said he believes enough has been done to satisfy the Federal Trade Commission, reports the Cincinnati Business Courier.
“We believe we have addressed all of the questions the FTC would have,” McMullen said during a conference call with analysts and investors. “We also were able to accomplish all of the commitments we made in October of last year and found a buyer that would recognize the labor contracts as well.
“So, we feel like all those things that you would have on a check-off list, we’ve met all of those and exceeded as well.”
McMullen told the group that Kroger and Albertsons looked at more than 20 potential buyers before deciding to go with C&S Wholesale Grocers.
