Antitrust regulators cleared the merger of two of the country's largest grocery chains on Tuesday, but only after the companies agreed to divest 63 stores in markets where the combined chain would have controlled an outsized share of local grocery sales.
The approval ends nearly eighteen months of regulatory scrutiny that included two rounds of extended review and a threatened lawsuit that was ultimately dropped after the divestiture concessions were finalized.
Consumer advocacy groups remain split on the outcome. Some argue the divestitures are sufficient to preserve local competition, while others contend that a smaller competitor buying the divested stores wholesale could still recreate concentrated market power within a few years.
Shares of both companies rose modestly on the news, though analysts noted that integration costs and labor union negotiations remain significant open questions for the newly combined entity.