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Kroger, Albertsons detail list of store locations, DCs to be divested

Some 579 Kroger Co. and Albertsons stores across 18 states will be divested.

The Kroger Company has released the locations of the assets they plan to offload to C&S Wholesale Grocers as they look to allay antitrust concerns over their proposed $24.6 billion merger with Albertsons Cos.

The assets include 579 Kroger- and Albertsons-owned stores across 18 states and Washington, D.C., including 124 locations in the state of Washington, 1o1 in Arizona, 91 in Colorado and 63 in California. (To see the complete list, click here.)

In addition, the list includes six distribution centers (two in Phoenix, two in Colorado and one each in Salt Lake City and Auburn, Wash.) and a dairy plant, in Denver. The companies released list about six weeks before a crucial court hearing is set to begin regarding the grocers’ proposed merger.

Earlier this year, the Federal Trade Commission issued an administrative complaint and authorized a lawsuit in federal court to block the proposed merger between the two companies, which was first announced in October 2022.  Regulators and unions have expressed concerns that the merger will lead to higher prices, store closures and job losses.

[Read More: FTC sues to block Kroger-Albertsons’ $24.6 billion merger]

Judge Adrienne Nelson of the U.S. District Court for the District of Oregon has set a hearing date of Aug. 26 regarding the FTC’s request for a preliminary injunction against the merger

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A group of United Food & Commercial Workers local unions  opposing the merger — UFCW 7, UFCW 324, UFCW 400, UFCW 770 and UFCW 3000 — issued a joint statement, saying the release of the list “changes nothing.”

“The merger is not a done deal, far from it. We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago — because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal,” the statement said. 

In April, Kroger and Albertsons added 166 more stores to the original list of 413 locations to be sold to C&S Wholesale Grocers. Under the new agreement, C&S will pay Kroger about $2.9 billion in cash for the stores, up from the previous $1.9 billion under the original plan. 

In addition to maintaining the the sale of Kroger’s QFC, Mariano's and Carrs banners to C&S, the amended agreement includes the sale of the Haggen banner to C&S as well. Stores currently under these banners that are retained by Kroger will be converted into one of the retained Kroger or Albertsons Cos. banners following the close of the transaction with C&S.

Also, under the updated plan, C&S will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. In these states, Kroger will re-banner the retained Albertsons and Safeway bannered stores following the closing of the merger. Kroger will maintain the Albertsons and Safeway banners in the remaining states.

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