Kroger Sells Specialty Pharmacy Business to Elevance Health in $24.6 Billion Merger Amid Regulatory Challenges

Kroger, a major grocery store chain, has announced that it will sell its specialty pharmacy business to U.S. health insurer Elevance Health. While the financial details of the deal remain undisclosed, it is expected to be finalized in the second half of 2024. The specialty pharmacy business caters to patients with chronic illnesses that require specialized care, highlighting Kroger’s commitment to providing quality services.

This move by Kroger allows them to focus on their core operations while ensuring that patients with complex healthcare needs continue to receive the support they require. It is important to note that Kroger’s specialty pharmacy business is separate from its in-store retail pharmacies and The Little Clinic business, which will not be part of the transaction with Elevance Health.

The decision to sell the specialty pharmacy business comes after the Federal Trade Commission took legal action to prevent the merger between Kroger and Albertsons. The FTC argued that the merger would lead to higher food prices for consumers, prompting Kroger and Albertsons to offer divestments to C&S Wholesale Grocers to address antitrust concerns. The original $24.6 billion merger was announced in 2022 with the potential to create a chain of 5,000 stores, but regulatory obstacles have led to changes in the business landscape.