Thursday, July 18, 2024

Albertsons to Divest Shreveport and Lake Charles Stores in Kroger Merger Plan

by BIZ Magazine

Albertsons has announced plans to sell grocery stores located in Lake Charles and Shreveport as part of its strategy to secure federal approval for a $24.6 billion merger with Kroger. If the merger, first announced in 2022, receives the green light, the stores at 2750 Country Club Drive in Lake Charles and 105 E. Southfield Road in Shreveport will be sold to C&S Wholesale Grocers.

In a divestiture plan initially revealed in September, Albertsons and Kroger intended to sell over 400 grocery stores nationwide. However, to address federal concerns, the number of planned divestitures increased to 579 in April. The latest list of stores to be sold was released on Tuesday.

Despite these efforts, it remains uncertain whether the divestiture plan will be sufficient to gain federal approval. The Federal Trade Commission (FTC) filed a lawsuit in February to block the merger, arguing that it could result in higher prices for consumers and lower wages for employees.

Albertsons and Kroger are under intense scrutiny as they navigate the regulatory landscape in an attempt to finalize their merger. The companies’ adjustments to their divestiture plans demonstrate their commitment to addressing regulatory concerns and moving forward with their business strategy.

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