K A S H R U T . C O M_©

September 6, 2023 from the Reuters:

"Kroger Co (KR.N) and Albertsons Cos Inc (ACI.N) are nearing a deal they hope will secure U.S. regulatory clearance for their proposed $24.5 billion merger, by selling more than 400 grocery stores to C&S Wholesale Grocers for nearly $2 billion, according to people familiar with the matter.

"The deal would give privately held C&S, primarily a supplier rather than an operator of grocery stores, a much more significant footprint. It currently operates about two dozen stores under the Grand Union and Piggly Wiggly brands.

"The stores that Kroger and Albertsons plan to shed are primarily in the Pacific Northwest and the Mountain states, along with some in California, Texas, Illinois, and the East Coast, the sources said.

"An agreement may be reached as early as this week, they said, adding it remained unclear whether it will allay regulators' fears that a combined Kroger and Albertsons would have too much control over grocery prices.

"C&S has been looking to build its own store presence in a fiercely competitive market for supplying groceries. It lost one of its largest customers when Ahold Delhaize (AD.AS) decided to transition to self-distribution in 2019."