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Introduction:
In twist events, two grocery biggies, Kroger Co and Albertsons Cos Inc, seems to be putting all eggs in one basket. They're on edge of finalizing a big deal. This move, talk of town, believed to clear path for their proposed $24.5 billion merger.
The Proposed Deal:
Kroger Co and Albertsons Cos Inc beating around bush, almost ready hand over 400 their grocery stores to C&S Wholesale Grocers. This sale, worth pretty penny nearly $2 billion, their ace hole get U.S. regulatory green light for merger horizon.
C&S Wholesale Grocers' Expansion:
C&S Wholesale Grocers, traditionally behind scenes as supplier, about wear bigger boots. They currently handful stores under Grand Union and Piggly Wiggly banners. This acquisition their ticket big league.
SoftBank's Role:
In surprising turn, SoftBank Group Corp, heavyweight Japanese investment group, mulling over throwing hat ring. While SoftBank usually fingers tech pie, their connection C&S's top dog, Rick Cohen, through venture warehouse firm Symbotic Inc, sheds light potential involvement.
Geographical Distribution of Stores:
Grocery stores Kroger and Albertsons mulling over selling scattered like stars, mainly Pacific Northwest, Mountain states, few other places like California, Texas, Illinois. But will this move feather cap?
Regulatory Concerns:
Main driving force behind sale to keep regulatory hounds bay. There's cloud doubt union Kroger and Albertsons might give them upper hand dictating grocery prices. Will this sale silver bullet they need?
Previous Announcements:
Past, whispers Kroger and Albertsons hinted them possibly parting 100 to 375 stores, creating new entity Albertsons loyalists. Kroger even let slip might go far letting go 650 stores. This them counting chickens before hatch?
C&S's Market Strategy:
C&S, itch expand store presence dog-eat-dog world grocery supply, had setback. Lost big fish when Ahold Delhaize decided lone wolf 2019. Is this acquisition golden goose?