In a joint statement released today, The Kroger Co. (NYSE: KR), Albertsons Companies Inc. (NYSE: ACI), and C&S Wholesale Grocers, LLC addressed ongoing discussions with the Federal Trade Commission (FTC) and state Attorneys General regarding their proposed merger and divestiture plan. The companies expressed confidence that the merger, along with the comprehensive divestiture to C&S, will yield positive outcomes for customers, associates, and communities.
The anticipated closure timeline has been updated, with the companies now expecting the merger to conclude in the first half of Kroger’s fiscal year 2024. Despite the extended timeline, the companies assured stakeholders that the merger agreement and divestiture plan were structured to accommodate potential delays. The commitment to closing the transaction and delivering promised benefits remains unwavering.
Kroger’s combination with Albertsons is expected to bring lower prices and increased choices to customers. Kroger has pledged to invest $500 million in price reductions from day one, along with an additional $1.3 billion to enhance the overall customer experience. The merger aims to make fresh, affordable food more accessible to a broader audience across various communities.
A key focus of the merger is the protection of union jobs, with assurances from Kroger that there will be no store closures or layoffs of frontline associates. An incremental investment of $1 billion is committed to raising wages and providing comprehensive benefits for all associates post-close. Kroger emphasized its dedication to supporting its workforce by offering continuing education benefits to over 700,000 part-time and full-time associates, enabling access to up to $21,000 in reimbursement for higher learning or ongoing development.
C&S Wholesale Grocers, as the identified divestiture buyer, has committed to recognizing the union workforce, maintaining collective bargaining agreements, and retaining frontline employees. This commitment aligns with the companies’ shared goal of securing the future of union jobs in the American grocery industry.
The merger also promises increased opportunities for community investment across the United States. Kroger, in alignment with its mission to create neighborhoods free from hunger and food waste, announced a commitment last year to donate 10 billion meals upon completion of the merger by 2030. This initiative is designed to address food insecurity and waste, equivalent to feeding every person in the cities of Seattle, Denver, Chicago, and Boston every meal, every day for nearly two years.
As the companies navigate ongoing discussions with regulators, they reiterate their commitment to delivering on the promises made and creating a positive impact on customers, associates, and communities through the proposed merger and divestiture plan.
