Kroger and Albertsons reveal list of supermarkets at risk of sale during merger

Supermarket giants Kroger and Albertsons have released a list of almost 600 stores they would sell if they were released for their $24.6 billion Fusion.

O chains offered in April to sell 579 stores in communities that have overlaps Kroger and Albertsons markets to C&S Wholesale Grocers for $2.9 billion.

In addition to the stores, Kroger and Albertsons also agreed to sell six warehouses and a diary factory in Denver to C&S. O stores agreed to the sale as an antitrust measure required by federal regulators overseeing the companies’ proposed merger.

Kroger and Albertsons operate nearly 5,000 stores in the US. In addition to its Kroger stores, the company also operates Ralphs and Harris Teeter stores, while Albertsons operates its own stores in addition to Safeway, Acme and Jewel-Osco stores.

The U.S. Federal Trade Commission filed suit to block the companies’ merger in February, citing the proposed mega-grocer’s potential to raise food prices and reduce wages for store workers.

Kroger and Albertsons initially offered to sell 413 stores to C&S Wholesale, but regulators rejected the deal, arguing that it would have left C&S with a handful of stores in isolated markets and would have little impact on reducing Kroger’s dominance. Albertsons.

The companies then suggested adding another 166 stores, six distribution centers and a diary factory to sweeten the deal.

The states where the most stores will be sold are Washington, with 124 stores, Arizona with 101, Colorado with 91 and California with 63.

The new plan also transfers the Haggen store brand to C&S Wholesale and gives C&S the Albertsons brand in Arizona and Colorado.

Under the proposed agreement, C&S would continue to operate all sold stores and honor any existing labor agreements at the grocery stores.

Regulators have not announced whether they intend to accept the deal. Kroger and Albertsons have argued that the merger is necessary so they can compete with mega-retailers like Walmart and Amazon.

While the companies await a ruling from the FTC, a coalition of local United Food & Commercial Workers unions — which represent grocery workers — has continued to oppose the merger.

“Today’s announcement changes nothing,” the unions said in a statement. “We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced more than 20 months ago – because we know it would harm workers, it would harm buyers, it would harm suppliers and communities, and it is illegal.”