The fate of the largest supermarket merger in US history depends on a little-known grocery distribution company. This was reported by Wall Street Journal.
C&S Wholesale Stores, a 106-year-old New Hampshire company, could play a key role in the antitrust case over the $20 billion Kroger-Albertsons deal. The trial is set to begin Monday in federal court in Oregon and last about three weeks, the magazine writes.
To address antitrust concerns, Kroger and Albertsons agreed to sell 579 stores to C&S. The magazine said that would bring the total number of C&S locations to 744, comparable to Trader Joe’s and Whole Foods.
“We will be a leader in the industry,” said C&S CEO Eric Winn.
The deal would make C&S the eighth-largest U.S. food retailer, with estimated sales of more than $40 billion.
The Federal Trade Commission (FTC) believes C&S can’t compete with its larger rivals. The agency said C&S has purchased hundreds of stores over the past 20 years but has ultimately sold or closed most of them.
A C&S spokesman said the company was committed to expanding its retail network and had the experienced management team and financial strength to invest in the business.
The company currently serves about 7.5 thousand customers and says the addition of Kroger and Albertsons locations will give it more leverage in negotiations with food suppliers.
Most companies would reject the merger if a federal judge issues an injunction. The newspaper says C&S has agreed to hire Albertsons Chief Operating Officer Susan Morris to run its food retail business if the deal goes through.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.