In an effort to alleviate fears of a monopoly, Kroger and Albertsons (owners of Fred Meyer and Safeway) proposed to sell more than 579 stores in 18 states to advance their proposed merger. In early July The Oregonian first reported on the companies’ list of specific stores to be sold to C&S Wholesale Grocers if the merger is approved by the Federal Trade Commission (FTC).
On the list to be sold are St. Johns Safeway at 8330 N. Ivanhoe St. and the MLK Safeway at 5920 N.E. Martin Luther King Blvd. There are a total of 62 stores in Oregon and 200 stores across the Northwest that would be sold.
The Federal Trade Commission has challenged the merger saying it would create a monopoly and eliminate jobs.
Critics say C&S does not have enough retail experience to handle a sudden increase of nearly 600 retail stores. They cite a failed past sell-off in the Albertsons-Safeway merger several years ago that resulted in closed stores and lost jobs.
In other merger news, the $24.6 billion acquisition has been challenged by the State Attorney General of Colorado. That’s in addition to the FTC lawsuit which several states including Oregon have joined. The Colorado court ruling blocks any further merger transaction activities until a hearing in late September.
The FTC’s lawsuit trial that could block the merger nation-wide permanently begins August 26 in Portland under US District Judge Adrienne Nelson. It’s expected to last two or three weeks. The proposed merger would be the biggest US grocery deal in history if it goes through.