Kroger and Albertsons have updated their divestiture package in a move to appease regulators, committing to sell 579 stores to C&S Wholesale Grocers. The change adds 166 stores to the sale, including 10 more Albertsons locations in Idaho.
The updated divestiture deal is now worth $2.9 billion.
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The supermarket giants announced the change following a suit filed by the Federal Trade Commission aiming to block the merger. The FTC as well as 8 states claim that the merger would eliminate competition and threaten consumers' access to affordable groceries while also undermining labor unions.
The merger between Kroger and Albertsons has come under scrutiny since its announcement in October 2022. Kroger's chairman and chief executive Rodney McMullen claims that the updated deal with C&S "addresses concerns raised by regulators."
