By Adriano Marchese
The proposed merger of U.S. grocery giants Kroger and Albertsons, and sale of assets to C&S Wholesale Grocers, will be later than previously anticipated as the companies continues discussion with regulators.
In a joint statement on Monday, the companies said that due to continued discussions with the Federal Trade Commission and individual state Attorneys General, they now expect the deal to close in the first half of Kroger’s fiscal 2024.
Previously, the companies expected to close the transactions early in the calendar year. Kroger reported its third quarter results at the end of November.
The companies said they remain in active and ongoing dialogue with the regulators regarding the proposed merger and divestiture plan.
Kroger in October proposed to acquire Albertsons. Early in September, the pair entered into a definitive agreement with C&S Wholesale Grocers for the sale of select stores and other assets as the two grocery giants in an effort to complete their planned tie-up.
In response to the new timeline, the companies said that “while this is longer than we originally thought, we knew it was a possibility and our merger agreement and divestiture plan accounted for such potential timing.”
Kroger said it plans to invest $500 million to reduce prices beginning the first day the merger is complete, and it has committed to protecting union jobs, with no plans for store closures or laying off frontline associates. Among other investments, Kroger said it will invest an incremental $1 billion to raise wages and comprehensive benefits for all associates post-close.
Write to Adriano Marchese at [email protected]
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