Two Grocery Chain Giants Set to Sell 600 Locations to Get Merger Approved

Kroger and Albertsons, planning a merger, have identified 579 locations they aim to sell.

This divestiture is part of efforts to address regulators' concerns over Kroger's acquisition of Albertsons.

C&S Wholesale Grocers will buy these stores after the merger completes, according to an April press release.

Initially, 413 stores were to go to C&S, announced in September 2023. In April, they increased this number by 166, making the total 579.

The stores are spread across 18 states: Alaska (18), Arizona (101), California (63), Colorado (91), Delaware (1), Idaho (10), Illinois (35), Louisiana (2), Maryland (4), Montana (2), Nevada (16), New Mexico (9), Oregon (62), Texas (28), Utah (4), Virginia (3), Washington (124), D.C. (1), and Wyoming (5).

The deal also includes six distribution centers, a dairy plant, and other non-store assets. FOX Business reported this previously.

These distribution centers are in Arizona, Colorado, Utah, and Washington. The plant is in Colorado, as per the new list.

Kroger CEO Rodney McMullen assured in April, "No stores will close due to the merger. All frontline associates will remain employed, and existing collective bargaining agreements will continue."

The merger faces regulatory scrutiny. In February, the Federal Trade Commission (FTC) filed a legal challenge that is still ongoing.

The FTC argues the merger could lead to "higher prices for groceries and other essential household items" and reduce consumer choices. Kroger and Albertsons claim the merger will benefit customers, associates, and communities.

Kroger and Albertsons are publicly traded. Kroger's market cap was about $38.02 billion late Thursday, while Albertsons' was $11.33 billion.