FTC Approves Kroger-Fred Meyer Merger

Kroger Co., the nation’s largest supermarket chain, won Federal Trade Commission approval to buy rival Fred Meyer Inc. after agreeing to sell eight stores in Wyoming, Arizona and Utah. The $8-billion acquisition, announced in October, will give Kroger 2,200 stores spanning 31 states from the East Coast to Alaska, with combined 1998 sales of $43 billion. Kroger, whose roots date back to 1883, now adds the Smith’s Food & Drug Stores banner to its Kroger and Ralphs chains. The grocer expects the deal to cut costs by as much as $225 million a year to help stay ahead of fast-growing rivals Safeway Inc. and Albertson’s Inc. and discount retailers such as Wal-Mart Stores Inc., which are stocking more groceries. On the New York Stock Exchange, shares of Cincinnati-based Kroger rose 50 cents to close at $54.69, and shares of Portland, Ore.-based Fred Meyer rose 79 cents to close at $54.38. Kroger plans to exchange one of its shares for each Fred Meyer share.