Kroger, Albertsons sell more than 400 stores for nearly $2 billion. Here's where
This story has been updated to reflect the announcement of the sale.
Kroger and Albertsons supermarkets will sell more than 400 stores to C&S Wholesale Grocers for nearly $2 billion as part of their proposed $25 billion merger, the companies announcedon Friday.
The divestiture, which was first reported to be in the works on Tuesday by Bloomberg, is part of a move to mollify antitrust regulators at the Federal Trade Commission.
Kroger and Albertsons agreed to sell stores that are in the Pacific Northwest, the Mountain states and in California, Texas, Illinois, and the East Coast.
Kroger and Albertsons outlined the potential sale of 100 to 375 stores when they first announced their proposal in 2022. They have since disclosed they would cap divested stores at 650 locations.
Kroger: Kroger aims to be America's grocery store. The Biden administration may have other ideas
Kroger-Albertsons merger
The proposed Kroger-Albertsons merger would be one of the largest retail takeovers in history. The deal would give Kroger almost 5,000 stores and more than 700,000 workers before an undetermined number of store divestitures.
The two companies have vowed not to close stores or layoff workers, but the unions and other critics are skeptical.
Consumer and union groups have opposed the deal, claiming it would hurt competition and ultimately raise prices and harm workers. Regulators have declined to comment as they decide whether to block it. Kroger executives have vowed to fight for the deal in court.
Data: Grocers like Kroger, Walmart collect shopping data. What I found when requesting mine.
What Kroger and Albertsons stores will be affected?
Stores in 17 states and the District of Columbia will be affected:
104 Albertsons Cos. and Kroger stores in Washington
66 Albertsons Cos. and Kroger stores in California
52 Albertsons Cos. stores in Colorado
49 Albertsons Cos. and Kroger stores in Oregon
28 Albertsons Cos. stores in Texas and Louisiana
24 Albertsons Cos. stores in Arizona
15 Albertsons Cos. stores in Nevada
14 Kroger stores in Illinois
14 Albertsons Cos. stores in Alaska
13 Albertsons Cos. stores in Idaho
12 Albertsons Cos. stores in New Mexico
12 Albertsons Cos. stores in Montana, Utah and Wyoming
10 Harris Teeter stores in Washington, D.C., Maryland and Virginia
The deal is subject to Kroger and Albertsons closing their merger. The companies added the deal may require C&S Wholesale to purchase an additional 237 stores from Kroger and Albertsons, in conjunction with securing regulatory approval.
Kroger would not specify which locations will change hands citing that the merger is still in the regulatory process, according to a company spokesperson.
Kroger and Albertsons are also selling off eight distribution centers, two offices and five private-label brands as part of the transaction.
C&S Wholesale Grocers
The deal would give C&S Wholesale, which supplies more than 7,500 supermarkets across the country, a much bigger footprint in the grocery store business.
The private company currently operates a few dozen supermarkets, including 11 Grand Union stores in New York and Vermont as well and an unspecified number of Piggly Wiggly stores in Wisconsin and the Southeast.
SoftBank Group Corp, a Japanese investment group, is talking to C&S Wholesale about helping finance a small portion of the deal, Reuters reported.
Aldi to buy 400 Winn-Dixie and Harveys Supermarket grocery stores
The potential deal comes after Aldi announced last month it was buying about 400 Winn-Dixie and Harveys Supermarket stores across the Southeast in an agreement with parent company Southeastern Grocers.
Aldi: Aldi to buy 400 Winn-Dixie and Harveys Supermarket grocery stores across the Southeast
"The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” Aldi CEO Jason Hart said in a news release.
This article originally appeared on USA TODAY: Kroger, Albertsons sell 413 stores for nearly $2 billion. Here's where
