Kroger CEO Rodney McMullen reports that Albertsons merger negotiations with regulators are on track. WGB 3/4/23
Are Kroger and Albertsons Closer to Store Divestitures?
A Reuters article that appeared in Progressive Grocer on 2/10/23 claims the retailers are moving ahead with potential sale or spinoff of 250 to 300 stores.
The Value of the divested stores could exceed $1 Billion.
3. Albertsons Cos. Gets Approval to Pay Out $ 4 Billion Special
Dividend. PG 1/18/23
4. Arizona Launches Antitrust Investigation Into Kroger-ABS
Merger. State AG Kris Mayes cites potential impact on consumers, workers, farmers and ranchers. 5. Kroger-Albertsons Merger Article, "The Street", Morning News Beat 2/7/23
Whether the Kroger-Albertsons combination will lead to lower
prices remains to be seen, The Street writes: "Grocery prices move largely based on buying power and supply chain costs because most Americans have multiple choices when they shop. Yes, there are certain areas where consumers have limited brick-and-mortar choices, but Amazon and Walmart pretty much serve the entire country.
"Some consumers, of course, want to shop at dedicated grocery chains and a combined Kroger and Albertsons would be a stronger company with improved buying power and greater efficiencies."
But, The Street suggests, a combined Kroger-Albertsons entity "would still be at a major disadvantage to Amazon, Walmart, and Costco."
The Merger is expected to be finalized in the 1st quarter of 2024.
SOURCES: WGB, PG, DSN, Grocery Dive, SN