Kroger Co KR and Albertsons Companies Inc ACI reached a definitive agreement with C&S Wholesale Grocers to sell select stores, banners, distribution centers, offices, and private label brands for $1.9 billion as part of their proposed merger.
This move aims to expand access to affordable food and create a competitive alternative to non-union retailers. C&S Wholesale Grocers is reportedly backed by SoftBank Corp SFBQF.
Related: C&S, SoftBank Near Deal To Purchase Stores From Kroger, Albertsons: Report
The deal includes the sale of 413 stores, 8 distribution centers, 2 offices, and 5 private label brands across 17 states and the District of Columbia.
The agreement encompasses the sale of the QFC, Mariano's, and Carr's brand names and exclusive licensing rights to the Albertsons brand name in Arizona, California, Colorado, and Wyoming.
The divestiture plan ensures no stores will close due to the merger and that all frontline associates remain employed. C&S commits to maintaining collective bargaining agreements securing union jobs.
The Kroger-Albertsons merger is expected to close in early 2024.
Also Read: Kroger's Mixed Q2 Earnings & $1.4B Opioid Settlement - What You Need To Know
Price Action: ACI shares are trading higher by 2.47% at $23.63 and KR lower by 0.16% at $45.46 on the last check Friday.
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