Kroger Rumored to Have Second Thoughts on Acquisition of Rite Aid's Stores
CINCINNATI, OH – Towards the end of the summer, speculations circulated that Kroger might be looking to expand its supermarket presence by acquiring hundreds of Rite Aid stores. But, the deal may not come to fruition, according to recent reports.
As we’ve covered previously, Kroger was said to be in moves to acquire the stores as Walgreens looks to sell as many as 1,000 Rite Aid shops in order to acquire the chain. More recently that number has narrowed down to 650 stores as the two look to seal a $17 billion deal, but Kroger’s, or another shopper’s, purchase of the remaining locations could be key to the FTC’s approval.
The New York Post reported that sources close to the situation said that the FTC told Kroger the 650 store operations couldn't be moved into its grocery stores, closing stand-alone locations.
“The FTC is trying to preserve the stand-alone stores,” an anonymous source said, according to the New York Post. “But Kroger might want to integrate. What happens to Rite Aids it buys that are near Krogers?”
Kroger did not comment to the news source on whether or not it would move forward, but it met with several hedge funds last week to report that it is currently figuring out its “special sauce” in expanding.
We will continue to report on this and other key moves for growth as details emerge.
