In an effort to secure federal approval for a proposed merger, Kroger and Albertsons announced that they would sell additional stores as part of a divestiture agreement, including dozens in Illinois., a total of 579 stores across the companies’ portfolios would be sold to C&S as part of a deal designed to earn federal approval of the merger, with regulators raising concerns about lack of competition and other factors in resisting a final deal.
While the companies did not specify how many Illinois stores would be affected, a number of grocery chains operate the stores in the state. Albertsons currently operates 188 Jewel-Osco locations in Illinois, Indiana and Iowa, while Kroger operates locations in Illinois under its own banner. The companies have pledged that no stores will be closed as a result of the merger, and all collective bargaining agreements will remain in place.
The suit is scheduled for consideration by an administrative law judge at the agency. The FTC also filed a lawsuit with the U.S. District Court in Oregon requesting a temporary injunction blocking the merger. That lawsuit was joined by the attorneys general of eight states and the District of Columbia.in October 2022. The companies said a merger would help them better compete with Walmart, Amazon, Costco and other big rivals. Together, Kroger and Albertsons would control around 13% of the U.S.
“This decision only strengthens larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry,” Kroger said.