LAS VEGAS (KTNV) — A proposed merger between The Kroger Company and Alberstons Companies Inc. could lead to over a dozen Nevada grocery stores being under new management.
On Friday, the companies announced they had entered into a definitive agreement with C&S Wholesale Grocers to sell 413 stores, eight distribution centers, two offices, and five private label brands across 17 states and the District of Columbia. According to a press release, that includes 15 stores in Nevada.
"Following the announcement of our proposed merger with Albertsons, we embarked on a robust and thoughtful process to identify a well-capitalized buyer who will operate as a fierce competitor and ensure divested stores and their associates will continue serving their communities in the ways they do today. C&S achieves all these objectives," said Rodney McMullen, chairman and CEO of The Kroger Co. "C&S's strong operational focus and financial resources, along with a comprehensive operational infrastructure included as part of the divestiture agreement, will position it to successfully operate and continue to grow these iconic brands for years to come."
According to a press release, Kroger officials said by selling to C&S, it would allow their competitor to expand to new areas, ensure no stores will close as a result of the merger, maintain all current collective bargaining agreements, including healthcare and pension benefits, wages, and investing in employees and stores.
The proposal is subject to securing Federal Trade Commission and other governmental clearances and could require C&S to purchase up to an additional 237 stores in certain areas.
The merger between Kroger and Albertsons has met some pushback. In August, secretaries of state from Colorado, Arizona, Maine, Minnesota, New Mexico, Rhode Island, and Vermont sent a letter to FTC Commission Chair Lina Khan asking her to block to merger.
"The merger would result in Kroger-Albertsons controlling nearly a quarter of the entire U.S. food retail market - a significant consolidation of the already limited competition within the market," the letter states. "Once there is such consolidation in the market, many consumers will no longer have choice. Kroger-Albertsons will have no competitive incentive to bring down prices and - despite what Kroger-Albertsons' claims - consumers will be powerless to hold the company accountable to promises of keeping prices low."
Nevada Attorney General Aaron Ford is hosting 10 listening sessions across the state to get feedback about the proposed merger.
"It is incumbent upon my office to review a corporate merger of this scale under the unfair trade practices act to determine its impact on trade and Nevada consumers," Ford said. "Considering the potential implications, it is important for me to hear directly from Nevada consumers to fully understand their concerns about the grocery store merger."
Ford adds that Khan will attend three listening sessions in the Las Vegas area on Sept. 13. You can see the full list of sessions below:
- Sept. 13, 10 a.m. - Henderson City Council Chambers, 240 South Water Street
- Sept. 13, 1 p.m. - North Las Vegas City Hall, 2250 Las Vegas Boulevard North
- Sept. 13, 5 p.m. - Andre Agassi Boys and Girls Club, 800 North MLK Boulevard
- Sept. 14, 7 p.m. - Mt. Crest Community Center, 4701 North Durango Drive
- Sept. 18, 6 p.m. - Parkdale Recreation Center, 3200 Ferndale Street
- Sept. 20, 6 p.m. - Doolittle Community Center, 1950 J Street
- Sept. 21, 7 p.m. - Desert Breeze Community Center, 8275 Spring Mountain Road
- Sept. 27, 7 p.m. - Paradise Community Center, 4775 South McLeod
- Reno, Oct. 10, 6 p.m. - McKinley Art Culture Center Auditorium
- Reno, Oct. 12, 6 p.m. - Evelyn Mount Northeast Community Center
