Kroger and Albertsons Announce Store Divestiture List Ahead of Merger
Kroger Co. and Albertsons Cos. have detailed plans to divest 579 stores, distribution centers, and plants across 18 states and Washington, D.C., to secure regulatory approval for their proposed $24.6 billion merger. The assets will be sold to C&S Wholesale Grocers, with notable divestitures including 124 stores in Washington, 101 in Arizona, 91 in Colorado, and 63 in California. This move aims to address antitrust concerns by ensuring that the merger does not lead to reduced competition in the grocery market.
The Federal Trade Commission (FTC) and several state attorneys general, including those from Arizona and Colorado, have raised objections to the merger, citing potential harm to consumers through higher prices, store closures, and job losses. A hearing is set for August 26 to discuss the FTC's request for a preliminary injunction against the merger. Despite these challenges, Kroger has argued that the merger is necessary to remain competitive against larger non-unionized rivals like Walmart, Amazon, and Target.
Affected employees will transition to C&S Wholesale Grocers after the transaction closes, with no anticipated job losses or store closures as a result of the merger. Kroger has also committed to investing $500 million to lower prices, $1 billion to increase wages and benefits, and $1.3 billion to improve Albertsons stores. The divestiture plan also includes 10 stores in Idaho, primarily in Boise, and additional locations in Meridian, Nampa, Pocatello, and Twin Falls.
