By: Timothy Inklebarger
Source: Supermarket News
Kroger and Albertsons have released a list of hundreds of stores that would be divested to C&S Wholesale Grocers if federal regulators approve its proposed $24.6 billion merger deal, and the states with the largest numbers include Washington, Arizona, and Colorado.
Under the proposal, Kroger and Albertsons would divest stores in Washington (124), Arizona (101), Colorado (91), California (63), Oregon (62), Illinois (35), Texas (28), Nevada (16), and Alaska (18).
Several states would see 10 or fewer stores divested, including: Idaho (10), New Mexico (9), Wyoming (5), Maryland and Utah (4), Virginia (3), Louisiana and Montana (2), and Washington, D.C., and Delaware (1).
Kroger also revealed the locations of six distribution centers that would be divested to C&S under the plan. Those are located in Phoenix and Tolleson, Arizona (2); Denver, Colorado, (2); Salt Lake City, Utah, (1); and Auburn, Washington (1). A dairy plant located in Denver would also go to C&S if the merger is approved.
It’s been a few months since Kroger updated its proposal to add 166 stores to its original divestiture plan, bringing the total number to 579 that would go to C&S.
Kroger issued a statement following the release of the list, saying the divestiture plan”is critical to bringing the meaningful and measurable benefits of our merger with Albertsons to associates, customers and communities across America.”
“C&S committed to ensuring zero stores will close as a result of the merger, all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading benefits alongside bargained-for wages,” the statement added. “C&S’s strong operational focus coupled with its experienced management team and financial resources will position it to successfully operate divested stores for years to come. Importantly, we are committed to working closely with C&S to ensure a seamless transition of ownership for all divested stores and supporting operational infrastructure.”
Meanwhile, 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.
“The merger proposal was rejected in January and February by the attorneys general from the states of Colorado and Washington and the Federal Trade Commission. We applaud their actions. They have been in possession of this proposed divestiture list, made public today by the companies, for months and that did not change their opposition to the proposed merger. These legal challenges to the proposed merger are moving forward with hearings beginning at the end of July and scheduled to go through September.”