Kroger, Albertsons identify nearly 600 locations they will sell to get merger approved
The FTC blocked the proposed merger and the store selloff will assist to get that through
Kroger and Albertsons, who are looking to merge, have identified the 579 locations across the country that they intend to offload from their combined grocery store count.
The planned divestiture of the stores is linked to the grocery giants’ efforts to assuage concerns voiced by regulators related to their proposed deal for Kroger to acquire Albertsons.
C&S Wholesale Grocers is the company slated to buy the stores. Their sale is supposed to happen after the completion of the Kroger-Albertsons merger, according to an April press release.
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Kroger and Albertsons first said in September 2023 that 413 stores would go to C&S and then, in April, upped the amount by 166 to its current count as part of a larger, updated divestiture plan.
A split image of Kroger and Albertsons storefronts. (Getty Images / Getty Images)
Of the 579 stores, 18 are located in Alaska; 101 in Arizona; 63 in California; 91 in Colorado; one in Delaware; 10 in Idaho; 35 in Illinois; two in Louisiana; four in Maryland; two in Montana; 16 in Nevada; nine in New Mexico; 62 in Oregon; 28 in Texas; four in Utah; three in Virginia; 124 in Washington; one in Washington, D.C.; and five in Wyoming, according to the list published by Kroger and Albertsons.
The deal with C&S also involves Kroger and Albertsons parting ways with six distribution centers, a dairy plant, certain brands and other non-store assets, as FOX Business previously reported.
The Kroger logo is seen on a store in Streator, Illinois, on Oct. 15, 2022. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
Those distribution centers are in four states (Arizona, Colorado, Utah and Washington), with the plant also located in Colorado, according to the newly-published list.
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Kroger CEO Rodney McMullen said in April, as the company announced the updated divestiture plan, that it "continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages."
The merger between Kroger and Albertsons has been facing regulatory scrutiny for quite some time. In February, the chains were hit with a legal challenge from the Federal Trade Commission (FTC) that remains ongoing.
Albertsons signage outside a supermarket in Las Vegas, Nevada. (Photographer: Bridget Bennett/Bloomberg via Getty Images / Getty Images)
The FTC has claimed the Kroger-Albertsons merger would cause "higher prices for groceries and other essential household items for millions of Americans" and reduce "consumers’ choices for where to shop for groceries," among other issues. Meanwhile, the grocery giants have said it would "produce meaningful and measurable benefits for customers, associates and communities across the country."
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Kroger and Albertsons are both publicly traded companies.
The former’s market capitalization hovered around $38.02 billion as of late Thursday afternoon. For Albertsons, it was $11.33 billion.
Eric Revell contributed to this report.